Europe’s Strategic Materials Push Expands Beyond Batteries, Linking Food, Chemicals and Low-Carbon Steel

Europe’s industrial strategy is being redrawn with an investor-grade focus on resilience in critical supply, not just electrification. As battery metals such as lithium, nickel and cobalt have taken center stage, policymakers and companies are also rethinking how they secure materials needed for agriculture, heavy industry and the transition to lower-carbon manufacturing.

The urgency has been sharpened by disruptions affecting potash and phosphate imports amid geopolitical tensions. With European agriculture reliant on these inputs, industrial actors have begun coordinating production and sourcing approaches to reduce dependency and improve stability for food production.

This broader reassessment is captured in a reconfiguration of critical materials, extending into fertilisers, chemicals, and steel. These sectors are increasingly framed as essential not only for resource security but also for maintaining industrial competitiveness while meeting Europe’s energy transition objectives.

From sourcing risk to cost stability in fertilisers

Companies including K+S are adjusting strategies that combine domestic output with diversified international sourcing. The rationale goes beyond availability: diversification is also intended to mitigate price volatility and geopolitical exposure.

In doing so, firms are effectively expanding what counts as “critical materials.” Inputs tied to food production are being treated alongside energy transition metals—reflecting a view that supply risk can translate directly into economic pressure across multiple parts of the value chain.

Green steel raises new dependencies on energy-linked inputs

The most visible transformation may be taking place in steel. Europe’s steel sector is undergoing one of the most profound industrial transformations in decades as policy direction toward decarbonisation policies and carbon pricing accelerates change.

Traditional blast furnace production is giving way to hydrogen-based and direct reduced iron (DRI) technologies. That technological pivot matters because it changes which raw materials become decisive. High-quality iron ore remains important, but hydrogen becomes a critical input—linking material selection directly to both production technology choices and environmental outcomes.

Thyssenkrupp and Salzgitter, among other industrial leaders, are investing billions of euros in low-carbon steel facilities. The projects require more than plant construction; they depend on secure renewable power sources and reliable hydrogen supply. This reality underscores the broader concept of sector coupling—the integration of energy systems with materials supply and industrial processing.

A connected system across metals, chemicals and recycling

Europe’s evolving approach emphasizes interconnectedness across materials, energy and manufacturing rather than treating each segment independently. Chemical companies, energy providers and industrial manufacturers increasingly look toward cross-sector partnerships aimed at aligning supply security with decarbonisation goals while improving production efficiency.

Circular economy principles sit at the center of this model. By increasing the use of secondary materials, Europe aims to reduce import dependency while also lowering energy consumption and emissions. The same logic is applied across metals, chemicals and other strategic material categories—building what is described as a more resilient industrial ecosystem.

Not self-sufficiency—strategic embedding in global networks

Even with deeper domestic integration efforts, Europe is not pursuing full self-sufficiency. Instead, it seeks to be strategically embedded within global supply networks. Long-term contracts, joint ventures and partnerships with resource-rich regions are used to secure access to raw materials while enabling European firms to focus on higher-value roles such as <strong value-added processing, engineering, and high-tech manufacturing.

The underlying message for industry competitiveness is that transformation depends on coordination rather than extraction alone: resources must be linked with processing capacity and end-use applications so that supply risks are managed without undermining growth potential.

The role of Germany in building a continent-wide network

Germany plays a pivotal role as Europe’s industrial engine, contributing technological expertise, advanced manufacturing capabilities and system integration. Other European regions complement these strengths through different local advantages—such as renewable energy availability, manufacturing infrastructure or specialized skills.

Together these contributions form a strategic materials network</span across Europe designed to support battery-related activity alongside green steel development, fertiliser production needs and advanced chemical industries.