Baseline analysis for the critical raw materials technology roadmap for Estonia






























Executive Summary
Critical raw materials are natural resources that are strategically important for the European Union’s economy and are associated with a high risk of supply disruption. These raw materials enable society to benefit from high-tech solutions and support the transition to green technologies, including renewable energy. Based on…..
Contents
Chapter 1 Introduction
1.1 Background

1.2 Structure of report
1.3 Method(s) used, including selection CRM and applications in the report

Chapter 2 Estonia demand of CRM – current and up to 2030 –
2.1 Focus on Net Zero transition but also digital, and defence

Chapter 3 CRM price trends, economic aspects
3.1 Raw Materials, Processed materials, metals, part finished good, sub-assemblies and products / equipment.
Chapter 4 Estonian primary supply
4.1 Estonian current geoscience and mining activity
4,2 Known reserves, locations, estimations of reserve sizes
4.3 Barriers and drivers to reserves exploitation
Chapter 5 Estonian secondary supply
5.1 Estonian current CRM recycling activity
5,2 Stocks and flows of CRM containing product and equipment in Estonia
5.3 Barriers and drivers to increase CRM recycling activity
Chapter 6 Estonian CRM processing
6.1 Estonian current CRM processing activity
6.2 Potential of increases in CRM processing in Estonia, locations, energy demand.
6.3 Barriers and drivers to increased CRM processing
Chapter 7 CRM related issues in Estonia
7.1 CRM skills and knowledge situation in Estonia, VET, Higher Education, wider societal learning, primary, secondary, processing and circular, drivers and barriers.
7.2 CRM start ups, acceleration and SMEs in Estonia, numbers, locations, sectors, drivers and barriers.
7.3 CRM related funding and financing in Estonia, R&I funding, grants, sovereign investment, banks, VC funding, LP funding, drivers and barriers.
7.4 Estonian actions to address requirements towards EU policies, NATO commitments, including RePowerEU, CRMA, NZIA, Green Industrial deal, batteries directive, chips directive, conflict minerals regs, 5% defence spend, (etc.)
Chapter 8 Specific recommendations
8.1 Strategic projects
8.2 Estonian ‘concession law’
8.3 Local benefit instrument
Chapter 9 Conclusions and recommendations for further work
References
Appendices
Appendix 1 TOR for the report

List of figures

Glossary of terms

Technical description of the subject of the research and development service
Baseline analysis for the critical raw materials technology roadmap
Terms of reference
Introduction
Critical raw materials are natural resources that are strategically important for the European Union’s economy and are associated with a high risk of supply disruption. These raw materials enable society to benefit from high-tech solutions and support the transition to green technologies, including renewable energy. Based on geological mapping and more detailed research, it is known that Estonia’s subsurface contains strategic and critical raw materials listed in the EU’s critical raw materials list, such as phosphorite, rare earth elements, vanadium and magnesium. In addition, the industrial waste generated and deposited in Ida-Viru County contains critical raw materials such as magnesium and aluminum. In certain cases, it may also be possible to extract elements from waste products that are on the critical raw materials list. The development of society increasingly relies on the availability of critical raw materials. Therefore, there is a high demand for those materials in the EU and on the global market. It is important to analyze which conditions their extraction and use could be considered in Estonia. Based on the analysis, a roadmap for the use of critical raw materials will be developed.
The Ministry of Climate is preparing a draft amendment to the Earth’s Crust Act, which will introduce a chapter on the concession of strategic mineral resources. This chapter will define the principles for initiating, defining and conducting the concession procedure. The concession procedure enables the state to select a development partner whose proposal considers long-term socio-economic, environmental and security aspects (including the adoption of the best available technologies, development of optimal valorization chains, and post-mining land use planning). The aim is to ensure the state’s leading role in setting the terms of resource use and to maximize the long-term benefits for society while considering the needs of companies assuming significant business risks in industrial investments.
Purpose
The aim of the analysis is to support the preparation of the roadmap and to assess the potential of the extraction and valorization of critical raw materials found in Estonia. The analysis will provide an overview of the distribution and value of primary and secondary raw materials in Estonia, suitable exploration, mining and processing technologies, and a general description of the possible environmental impacts of mining and processing. Additionally, the analysis will explore the potential uses of these raw materials in Estonian and European industries, assess their economic prospects and evaluate suitable valorization models to determine under which conditions the use of critical raw materials in Estonia is strategically and economically justified. The analysis will also propose recommendations for national support mechanisms for EU strategic projects. The aim is to support strategic decision making by providing input for the national roadmap for the exploitation and valorization of critical raw materials. The outcome will include recommendations for Estonia on the use of critical raw materials.


Tasks:
Status of critical raw materials exploration and potential valorization technologies in Estonia
1. Overview of the distribution and quality of critical raw materials found in Estonia, with estimated value, including primary and secondary raw materials.
2. Description and efficiency analysis of technologies for exploration, mining and processing of critical raw materials, including energy requirements, other resource needs (e.g., water) and impacts on CO₂ emissions.
3. General description of environmental impacts associated with the mining and processing of critical raw materials.
4. Mapping the possible industrial uses of critical raw materials found in Estonia as production inputs in various sectors (e.g., energy, electronics, mechanical engineering, chemical industry, battery technology, renewable energy, defense industry).
5. Overview of the potential uses of by-products generated during the valorization of critical raw materials.
Economic perspective and local benefits
6. Provide an overview of the demand and price trends for critical raw materials found in Estonia at the global and European levels.
7. Assess which raw materials could significantly impact the development and export capacity of Estonian industry. This includes evaluating whether full-scale valorization of critical raw materials should be conducted in Estonia or elsewhere or use of a hybrid model (i.e., primary processing in Estonia and final processing abroad) would be more suitable and under what conditions extraction and processing in Estonia would be feasible.
8. Assess which criteria should be considered when granting companies the rights to extract and use critical raw materials to maximize social benefits and ensure sufficient business interest.
9. Make proposals on the characteristics of potential EU-declared strategic projects that would qualify for preferential treatment by the state, including different solutions for various project types.
10. Analyze which local benefit instruments would be appropriate in the event of potential use of critical raw materials.
Summary of the analysis
Present recommendations for the use of critical raw materials found in Estonia, including the potential of Estonian industry and the possibilities for processing critical raw materials, considering technological, environmental, and by-product aspects. Additionally, address the framework for preferential treatment of EU strategic projects, the potential benefits for the state, and the possibilities for applying local benefit models.
Timeline and stakeholder involvement
1. The first version of the analysis must be completed by December 15th, 2025.
2. Discussion of the first version with the Ministry of Climate and stakeholders will take place in mid-January 2026.
3. The final version of the analysis must be completed by February 27th, 2026.
The preparation of the analysis will be carried out in cooperation with stakeholders, ensuring representation from major mining and chemical industry companies and the entire potential value chain, including: UP Catalyst OÜ, Eesti Energia (Enefit Industry AS), Viru Keemia Grupp AS, AS Alexela, Ragn-Sells AS, Heidelberg Materials Kunda AS, NPM Silmet OÜ, Estonian Association of Construction Material Producers, Estonian Mining Industry Enterprises Association, Estonian Chemical Industry Association.

Background information:
1. The focus area of research, development, innovation, and entrepreneurship (RDIE): valorization of local resources. Mineral resources. The roadmap of the focus area and its annexes
https://taie.ee/sites/default/files/documents/2023-04/Lisa%206.%20Kohalike%20ressursside%20v%C3%A4%C3%A4rindamine%20%28maap%C3%B5uressursid%29.pdf
2. Earth’s Crust Act
3. Strategic roadmap for the exploration and assessment of strategic mineral resources in the crystalline basement of Estonia
https://www.egt.ee/uuringud-ja-projektid/maapoueressursid/kristalse-aluskorra-uuringud
4. Intention to draft an amendment to the Earth’s Crust Act https://kliimaministeerium.ee/energeetika-maavarad/maavarad/fosforiit-jt-tulevikumaavarad
5. National mineral resources policy framework until 2050
https://kliimaministeerium.ee/energeetika-maavarad/maavarad/maapouepoliitika-pohialused-aastani-2050
6. A comparative study of mining legislation in selected countries with policy recommendations for Estonia.
https://kliimaministeerium.ee/sites/default/files/documents/2023-02/Teatud%20riikide%20kaevandamisalase%20seadusandluse%20v%C3%B5rdlusanal%C3%BC%C3%BCs_1.pdf
7. Legal analysis of the use and protection of Estonia’s mineral resources
https://kliimaministeerium.ee/sites/default/files/documents/2023-02/Maap%C3%B5ue%20kasutamise%20ja%20kaitse%20%C3%B5igusnormide%20anal%C3%BC%C3%BCs.pdf
8. Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202401252
9. Projects related to critical raw materials and chemical valorization processes.