Critical minerals form the foundation for society’s essential functions — from clean energy and electrification to defense capabilities and technological development. These raw materials are also vital for security of supply. At the same time, global supply chains for many minerals are geopolitically sensitive, which has made the role of critical minerals a key issue in Europe.
The importance of minerals is growing
Without minerals, there is no infrastructure, energy, defense, or green transition. Electrification, batteries, hydrogen production, and clean technologies all depend on minerals.
As we work to combat climate change and advance the green transition, the strategic importance of critical minerals is growing further in both Europe and the U.S.
Europe’s security of supply is built on European raw materials
Geopolitical tensions and shifts in trade policy are weakening the functioning of global supply chains, while domestic production close to home secures availability also in times of disruption. Europe’s security of supply must be built more clearly and more strongly on European raw materials: without minerals mined and refined here, security of supply cannot be strengthened, nor can the defense industry be developed.
The EU Critical Raw Materials Act (CRMA) aims for Europe to produce 10% of the critical minerals it needs by 2030. The EU will update its list of critical raw materials next year. NATO, in turn, has published a list of 12 defense-critical raw materials needed for the production of military technology. NATO’s objective is to identify vulnerabilities in supply chains and strengthen them to protect against potential material disruptions.
In practice, the EU’s production target for critical minerals means that Finland and Sweden, in particular, will play a growing role in the production of many minerals.
Finland has a key role in mineral self-sufficiency
Finland plays a central role in strengthening Europe’s mineral self-sufficiency and resilience. Many critical minerals are mined responsibly in Finland. Globally, Finland has an exceptionally strong minerals cluster thanks to our diverse reserves, strong technological expertise, and high sustainability standards. For example, the environmental impacts of Outokumpu’s Kemi mine are exceptionally low: oxidic chrome ore does not dissolve into the environment, concentration is carried out using gravity alone without chemicals, and the water used in the entire mining and concentration process circulates in a closed system. As a recent example, Outokumpu’s Kemi mine has launched a broad data-based circular economy ecosystem aimed at creating the first European operating model for utilizing mining side streams.
The Kemi mine is the EU’s only chrome mine. When refined into ferrochrome, chrome is a key raw material in the production of stainless steel, and its importance is growing particularly in applications for the defense and energy industries. Stainless steel, in turn, is an essential material for society’s critical infrastructure, such as energy networks and water systems. Today, both ferrochrome and metallic chrome are produced mainly in countries with high geopolitical risk. Yet the EU has not classified chrome as a critical mineral – although many others have, including the U.S. and China. Since the global supply of chrome is highly concentrated outside the EU, import dependency is significant, and recycling alone cannot meet demand. Chrome should therefore also be included among critical raw materials in the EU.
In addition to supporting Europe’s security of supply, Outokumpu’s value chain in the Kemi–Tornio region – comprising the mine, ferrochrome smelter, stainless steel production, and port – forms an integrated whole that also strengthens Finland’s security of supply.
Industrial investments require a long-term and predictable operating environment
Looking to the future, it is important to strengthen self-sufficiency in minerals and mineral value chains to avoid geopolitical risks and reinforce security of supply.
In Finland, the discussion sometimes focuses on what industry consumes, although it is equally important to recognize what industry enables. Mining is part of a broader industrial value chain in which minerals are refined into metals, technologies, and new solutions. Mines create jobs, investments, and vitality that extend from local communities to the entire national economy. We also have a unique opportunity to build complete circular economy ecosystems and high-value-added industry around minerals.
For industry, all of this requires investments and innovation. At the same time, it is important to understand that investments in heavy industry are decisions that span decades. If Finland wants to attract new investments, the operating environment must be long-term and predictable — in terms of energy, permitting, and taxation.
Outokumpu is currently developing and piloting new technology in the U.S. that will enable the production of higher-value ferrochrome products and nearly pure chrome metal in the future. Pure chrome is an important raw material for the aerospace, defense, and high-technology sectors, but Europe currently lacks its own supply chain for it. The new production method will also significantly reduce emissions. Commercial scaling by the end of this decade will require significant investments. Some of these could well be directed to Finland, provided that the investment environment is competitive and predictable.
Finland’s role in strengthening Europe’s mineral self-sufficiency and resilience is central and should be recognized. In recent years, the operating conditions for mines have weakened due to inconsistent taxation that is poorly targeted from a business perspective, eroding the profitability of mines and the entire ferrochrome and steel value chain. Finland has prepared an ambitious minerals strategy aimed at promoting the growth of the Finnish minerals cluster to support the green transition and strengthen Europe’s strategic autonomy. It should now be implemented as planned.