Overall, this announcement is part of a larger strategy developed by the European Commission to bolster local production of essential materials and secure the EU's resource future.

Promoters of these strategic projects will receive coordinated support from the Commission, member states, and financial institutions to facilitate their operationalization and access to financing.

Currently, China dominates the lithium market, processing raw materials from South America and Australia, which leaves the EU vulnerable to external dependencies.

To streamline project approvals, the EU plans to cap licensing processes at 27 months for extraction projects and 15 months for processing, significantly reducing the previous timeframe of 5 to 10 years.

However, environmental activists and local communities have raised concerns about the potential social and environmental impacts of these mining projects, leading to planned legal actions against the European Commission's decisions.

These projects require a total capital investment estimated at €22.5 billion, roughly $24.3 billion, highlighting the significant financial commitment involved.

The EU's initiative aims to enhance its independence from foreign resource suppliers by promoting domestic mining and refining operations, thereby reducing reliance on external supply chains.

Lithium, essential for electric vehicle batteries, is increasingly recognized as a resource that could surpass oil in importance in the near future.

The designation of these projects is intended to strengthen the European raw materials value chain and diversify supply sources, enhancing national capacities for critical raw materials.

Stéphane Séjourné, the European Commission's executive vice-president, emphasized the importance of lithium, nickel, graphite, and germanium for electric vehicle batteries and semiconductors, underscoring the need for raw material independence.

The European Commission has identified four strategic projects in Portugal, which include three lithium and one copper initiative, as part of a broader effort to support 47 mining and refining projects across the EU.

This initiative follows the EU's Critical Raw Materials Act, implemented in May 2024, which aims to improve the bloc's competitiveness in resource extraction and processing.