Mineral exploration spending in the EU would need to rise tenfold to about €2 billion a year over the next five years to help meet the bloc’s goals for domestically sourced strategic raw materials.
Europe has “significant untapped mineral potential” but too few exploration projects are ready to move towards mining after decades of underinvestment, according to a study commissioned by the European Investment Bank (EIB) and released on Thursday.
The study focuses on mineral exploration — the early-stage work to find and assess mineral deposits — and describes it as the riskiest part of the supply chain.
Only about one in 10,000 early exploration prospects, and one in 1,000 more advanced exploration projects, eventually become operating mines.
Under the EU’s Critical Raw Materials Act, at least 10% of the EU’s annual consumption of strategic raw materials is meant to come from domestic extraction by 2030.
Current mineral exploration spending in the EU is estimated at around €0.2 billion a year, and the study estimates it would need to increase to around €2 billion a year to support the EU’s domestic extraction objectives.
EU attracts small share of global exploration budgets
The EU accounted for 3% of the global exploration budget in 2024, compared with 20% for Canada and 16% for Australia, according to the study.
Some EU countries show higher levels of exploration activity are possible, with Finland and Sweden cited as examples.
The study lists barriers to exploration in the EU including complex and fragmented permitting systems, long approval times, incomplete or outdated geological mapping, limited public understanding of why raw materials are needed, too few small exploration companies able to take early-stage risk, and insufficient financial incentives for early-stage projects.
It recommends steps including simpler and more predictable permitting, better geological data, targeted financial incentives and more support for innovation.
“Europe has significant mineral potential of its own, which could play a much bigger role in strengthening our supply security,” said Nicola Beer, a vice-president of the European Investment Bank.
The EIB noted it has been increasing its support for critical raw materials, including approving a Critical Raw Materials Strategic Initiative in March 2025 that includes a one-stop shop and a dedicated taskforce to support project development.
