EU Trails in Mineral Stockpile, Threatening Crypto Hardware
The EU will launch a year-end consultation to establish a unified critical minerals stockpile, aiming to reduce its 80–90% reliance on Chinese graphite, cobalt, rare earths and gallium. The review will define priority minerals, funding models and governance. Individual members already invest: Germany commits €1 bn via KfW and France sets up a €500 M equity fund. Critics warn buying from China may entrench dependency and call for boosting domestic mining, processing and recycling.
Logistical challenges persist, notably lithium hydroxide’s rapid degradation in storage. The European Commission will open a dedicated Critical Raw Materials Centre in early 2026 to oversee supply-chain monitoring, procurement and storage. NATO and some member states are also exploring joint stockpiles for dual-use minerals amid tightened Chinese export controls and a deepening US-China trade war.
With the IEA forecasting a forty-fold surge in mineral demand by 2040, crypto miners should watch how the EU’s critical minerals stockpile plan affects hardware availability and equipment costs. Potential price volatility in related commodity markets could influence mining profitability and market stability.
Bearish
Rising logistical and geopolitical risks around critical minerals supply—especially lithium hydroxide degradation and Chinese export controls—threaten the availability and cost of GPUs and ASICs for crypto mining. Higher equipment costs squeeze miner margins in the short term, while prolonged dependency and slow EU coordination may prolong price volatility in related markets. These factors are likely to dampen mining profitability and investor sentiment, making the outlook bearish.