In the face of geopolitical tensions and supply-chain vulnerabilities, EU-India strategic cooperation has intensified drastically, culminating in the 2026 Free Trade Agreement‘s (FTA) political conclusion. This enhanced partnership gains particular significance for EU and Indian industrial resilience and the clean energy transition, where demand for Critical Raw Materials (CRMs), such as bauxite, lithium, and rare earths, has surged. Currently deeply monopolized by Chinese exporters, CRM supply chains represent both economic opportunity and geopolitical risk. Through the FTA’s tariff liberalization and more specialized policies regarding CRMs, for example the EU’s Critical Raw Materials Act (CRMA) diversification targets, India emerges as a key strategic supplier, promising market access and investment channels for sustainable mineral flows.
Author: Luzi Maj Leonhardt, EIAS Programme Coordinator
Photo credits: Pexels