Europe Gave Away the Keys to its Strategic Future

While the EU voices its ambitions for strategic defence autonomy, technological leadership, and green transition goals, it has quietly relinquished control of a critical asset—at a time when geopolitical tensions make such resources more vital than ever.

Through a highly contested and opaque restructuring, Singapore-based Trafigura took over Nyrstar—formerly one of Europe’s most strategically placed resource companies. The result? Europe no longer controls access to smelters and key critical minerals in Greenland, the U.S. and Australia which are essential for semiconductors, defense systems, and clean tech.

The so-called asset transfer orchestrated by Trafigura wasn’t just a corporate maneuver. It was a geopolitical play. Nyrstar’s offtake rights in Greenland’s Ironbark mine were transferred out of European hands. Meanwhile, Trafigura retains control of U.S. zinc mines now being positioned as key sources for Western gallium supply. And recently Trafigura announced that it will invest in Nyrstar's Australian Port Pirie smelter to produce Antimony, an essential critical mineral for the defense sector.

Gallium is not just any metal. It’s essential for 5G base stations, radar systems, military communications, and satellite infrastructure. It enables advanced radar and missile guidance systems and is key for next-generation battery technologies. Losing access to these resources isn’t just an economic blow. It’s a strategic failure. Europe lost an important bargaining chip in the trade war with the U.S..

Nyrstar’s Tennessee mines alone could supply up to 80% of the United States’ annual gallium demand—an extraordinary figure, considering China currently controls around 98% of global raw gallium production. Beijing’s recent export bans have intensified Western fears over supply chain vulnerabilities. This context helps explain renewed U.S. interest in securing alternative sources, from Greenland and Canada to Ukraine.

The damage from the alleged illicit takeover of Nyrstar has been estimated at €2 billion. But that figure barely scratches the surface. It does not include the loss of access to critical minerals, which are fast becoming the currency of geopolitical power. 

The EU’s Critical Raw Materials Act aims to secure future supply and build resilience. But what good is building new policy if we fail to defend what we already had? The Nyrstar case shows what happens when strategic assets are left exposed in an era where resources equal leverage. 

The Nyrstar case is a hard lesson: Europe cannot outsource its industrial future. What was once a stock-listed strategic asset is now a private geopolitical lever—controlled from abroad. If we fail to act, we’ll keep losing not just value, but sovereignty.