EU struggles to secure critical minerals as AI, EV demand surges

Europe is facing a widening gap between its supply-chain security goals and its ability to deliver them. As demand for critical raw materials grows—driven by the rapid expansion of AI systems, the shift toward electric vehicles, and the adoption of software-defined vehicle technology—the EU's local production and sourcing capacity has not expanded to match. This lag in supply-chain security has implications that extend beyond Europe: control over raw materials and energy resources is increasingly recognized as central to global competitiveness and technological independence. The article identifies this as a rising stakes issue for companies and economies worldwide, though it does not detail specific EU policy responses or concrete investment plans to address the shortfall.

Europe's push for supply-chain security is encountering a structural lag: while AI, software-defined vehicles, and electric vehicles are accelerating demand for critical minerals, the EU's capacity to source and produce these materials locally has not kept pace. The article frames this as a broad strategic vulnerability, one that affects not only European companies but global supply-chain participants. Control over raw materials and energy has become a central concern for technological leadership and economic resilience.