EU Mobilizes €21.1 Billion to Secure Raw Materials Behind Ammunition and Drone Production
The European Commission announced on October 20 that it had selected 46 new strategic projects across 16 member states under the European Critical Raw Materials Act, with an estimated combined investment need of €21.1 billion. Drawing on analysis from the Commission’s Joint Research Centre on dependencies in dual-use technologies, the Commission says these materials feed into a wide range of military equipment, from ammunition and drones to armored vehicles and radars.
The 46 projects break down into 8 extraction projects, 11 processing projects, 19 recycling projects, and 8 that span multiple stages of the value chain. They add to 47 projects selected earlier on EU territory, bringing the total number of recognized strategic projects to 93. The Commission also designated 13 additional projects in third countries to help diversify supply. Since the launch of the RESourceEU plan, more than €2 billion in financial support has reportedly been mobilized through the Innovation Fund, state aid and the European Investment Bank.
Tungsten, magnesium and rare earths take center stage
Three of the new projects focus on tungsten, whose density, hardness and heat resistance make it critical for certain types of munitions, heat-exposed components and aerospace equipment. Two projects target magnesium processing, used in lightweight alloys, while four projects cover rare earths tied to the permanent magnets used in electric motors, actuators and industrial systems — some with potential military applications. The Commission flags gallium, germanium, graphite and rare earths as materials at particular risk of supply disruption due to concentrated production in a handful of countries.
The Act also sets 2030 targets: EU extraction capacity should cover at least 10% of annual consumption of strategic raw materials, processing capacity should reach 40%, and recycling 25%. No single third country should account for more than 65% of annual consumption of any strategic raw material at a relevant processing stage — a framework designed to limit dependence on any one supplier nation.
Two new projects in Spain
Among the country-level details, Spain gained two new strategic projects: a tungsten processing plant in Puertollano, Ciudad Real, near the El Moto tungsten mine, and the reactivation of the Touro and O Pino copper mine in A Coruña. Together, these bring Spain’s total number of recognized projects to nine, up from seven previously. The report specifically notes that the copper mine project is not exclusively for defense use.
What it means for the defense industry
Strategic designation grants faster permitting and access to funding instruments, but it does not guarantee that the Commission will directly fund every project; execution still depends on technical viability, permits, financing and supply contracts. The announcement did not include a full project-by-project or company-by-company breakdown of the €21.1 billion, nor a material-by-material split of the funding. Still, the package stands as a concrete marker of Europe’s push to secure raw-material supply within the continent for one of the defense sector’s persistent bottlenecks — a concern that has become central to Europe’s defense agenda since Russia’s war in Ukraine.
Sources
- Infodefensa, “Europe mobilizes €21.1 billion to secure strategic raw materials for manufacturing ammunition, drones and military systems,” Ángel Luis de Santos, October 20, 2026. Used for the European Commission’s project selection, figures and Spain-specific details.
