Authors: Ruxandra Miuți, Innovation Manager, Green eDIH
Critical raw materials and rare earth elements are essential to the energy transition, and demand for these resources is increasing alongside the expansion of electric vehicles, wind turbines and energy storage technologies. However, the global supply chain is highly concentrated: China accounts for around 70% of global rare earth extraction and nearly 90% of processing capacity, where most of the added value is generated. The magnets used in electric motors depend on this processing capability, which is located almost entirely outside Europe, while the contributions of Australia, the United States and other countries are not sufficient to offset China’s dominance.
Under these conditions, any disruption in supply flows has an immediate impact on prices and availability, directly affecting the green industry. Europe and Romania face the same challenge: developing modern technological and industrial capacities aligned with Industry 4.0 standards in order to ensure a stable supply of critical raw materials. Without investment in digitalization, local processing and industrial innovation, the energy transition risks slowing down, with consequences for economic competitiveness.
Europe seeks to close the gap
The European Union remains dependent on a limited number of countries for the critical raw materials that underpin the energy transition. China supplies 100% of the EU’s demand for heavy rare earths, Turkey provides 98% of boron, and South Africa accounts for 71% of the platinum used in energy and industrial technologies. This level of dependency highlights the fragility of European supply chains and the need for rapid investment in local extraction, processing and recycling capacities.
The European policy response is the Critical Raw Materials Act (CRM Act), which serves as the central pillar of the EU’s strategy to reduce vulnerabilities across critical raw materials value chains. The Act sets clear targets for 2030: at least 10% of annual demand to be met through domestic extraction, 40% through processing within the EU, and 25% through recycling. These measures are supported by simplified permitting procedures, financial support for strategic projects and mechanisms for monitoring supply chains. At the same time, emphasis is placed on improving the collection of waste containing critical raw materials, addressing mining waste sites and encouraging the recycling of permanent magnets.
On the technological side, projects funded through the European Raw Materials Alliance and CORDIS focus on the exploration of deposits with reduced environmental and social impact, the optimization of extraction and separation processes, and the development of European capacity for manufacturing high-performance magnets. Recent studies suggest that carefully selected deposits, with lower social and environmental risks, could make a meaningful contribution to stabilizing Europe’s supply of rare earths. In parallel, industrial initiatives are exploring automated refining technologies, digital geological mapping tools and continuous process monitoring systems.
Through these efforts, Europe is seeking to move from a model based on raw material imports to an integrated value chain supported by innovation, digitalization and advanced industrial processes. Digitalized geological exploration, automated processing and integrated recycling are central elements of this approach. For green industries, microelectronics and electric mobility, this shift represents a necessary step towards reducing exposure to external shocks and ensuring a stable, competitive and sustainable energy transition.
Technology, Sustainability, and the Circular Economy: The New Architecture of European Mining
Globally, the mining sector accounts for between 4% and 7% of CO₂ emissions, making process modernization, equipment electrification, and reduced energy intensity key priorities for meeting European climate targets. These changes increasingly align with the principles of Industry 5.0, where advanced technologies are integrated into a sustainable, human-centered production model.
Digitalization is transforming how resources are explored and extracted. Automation, artificial intelligence, and IoT sensors have become the core infrastructure of modern mining. Real-time geological analysis platforms enable faster identification of deposits and significantly reduce the time required to characterize resources, a critical factor given that over 90% of global rare earth processing currently takes place outside Europe. In this context, delays in exploration or refining further increase supply chain risks.
Industry 4.0 technologies complement this process by enabling accurate productivity estimates, modeling extraction scenarios, and optimizing energy consumption. Continuous monitoring reduces operational risks and minimizes environmental impact. CORDIS-funded projects are accelerating the adoption of these solutions, from digital geological mapping to automated refining, reinforcing an industrial model in which digital engineering and data analysis play a central role.
At the same time, the circular economy is becoming a strategic resource. The EU increasingly treats electronic waste as an “urban mine,” and the Critical Raw Materials Act sets a target for at least 25% of critical raw material demand to be met through recycling by 2030. The recovery of permanent magnets and rare earth elements from e-waste is a priority area, supported by European projects focused on separation, purification, and remanufacturing. As the production of wind turbines and electric vehicles expands, recycling becomes a key element of industrial resilience.
Romania has significant potential in this area. According to an Environ report, the country could recover more than two metric tons of rare metals annually from electronic waste if it modernizes its collection infrastructure and adopts advanced treatment technologies. While these volumes do not cover domestic demand, local recycling contributes to regional stability, reduces import dependency, and lowers the carbon footprint of supply chains.
Through the convergence of technology, digitalization, and the circular economy, European mining is entering a new phase in which innovation and environmental responsibility become central drivers. This transformation supports the energy transition and helps build a competitive industrial base in a global system increasingly dependent on rare earths and critical raw materials.
Romania: Resources, Technology, and Skills Development for Modern Mining
Romania holds relevant mineral resources, including graphite, copper, and rare earth elements, placing it on the radar of investors and within European plans for critical raw materials. In 2025, new exploration procedures were launched, including graphite projects in Gorj County, and Romania is set to receive €615 million in funding for three strategic projects focused on graphite, magnesium, and copper. These initiatives can support the country’s repositioning within the European critical raw materials value chain, but modernizing the sector remains a challenge. Part of the existing capacity still relies on outdated technologies, local processing is limited, and the digital skills required for modern mining are insufficient.
Digitalization is accelerating changes in mining-related professional profiles. Skills such as operating autonomous equipment, 3D geological scanning, AI-based predictive analytics, and digital environmental performance reporting are increasingly required. For Romania, this implies investment in continuous training, upskilling programs, and the development of strong partnerships between industry, universities, and innovation centers. The Critical Raw Materials Act includes Romania among the 47 strategic mining projects selected across 13 EU member states, with the objective of contributing to European extraction, processing, and recycling capacity by 2030. At the same time, the designation of certain contested mining operations as “strategic projects” has triggered responses from civil society, calling for compliance with European environmental standards and thorough assessments of local impacts.
If Romania succeeds in linking natural resources with modern technological infrastructure and a digitally prepared workforce, it can build a competitive ecosystem within the European critical raw materials value chain. However, delays in adopting Industry 4.0 technologies, skills shortages, and social tensions remain obstacles that could limit the pace of transformation.
The Role of Green eDIH in Modernizing the Sector
In this context, Green eDIH plays a relevant role in aligning Romania’s mining sector with European Industry 4.0 and Industry 5.0 directions. The hub facilitates companies’ access to advanced digital technologies, ranging from data analytics platforms and IoT-based monitoring solutions to artificial intelligence tools for industrial process optimization. This technological infrastructure supports the mining industry’s transition toward a more efficient, predictive, and sustainable operational model.
At the same time, Green eDIH contributes to the development of a new generation of professional skills. Mining-related professions are increasingly moving toward technology-driven areas, including the operation of autonomous equipment, the use of digital simulations, advanced analytics, and integrated environmental monitoring. The hub supports these directions through the development of interactive tools, simulations, and virtual or augmented reality solutions that help improve understanding of modern technologies and increase the sector’s attractiveness for younger generations.
In a sector still shaped by negative perceptions regarding environmental impact, Green eDIH can contribute to reframing how mining is viewed in Romania. The hub promotes technical solutions with a lower carbon footprint, the integration of sustainability principles into industrial processes, and the adoption of technologies aligned with European environmental standards. Through this approach, Green eDIH becomes an active contributor to the transformation of a strategic sector, at a time when critical raw materials and technology are central to Europe’s competitiveness.
