Strategic Cross-Border Partnerships and the Future of France's Minerals Sector in Post-EU Green Deal Europe

The European Union’s Green Deal has redefined the strategic calculus for resource-sector investments, positioning critical minerals as the lifeblood of the continent’s energy transition. As the bloc aims for climate neutrality by 2050, the demand for materials like lithium, cobalt, and rare earth elements has surged, creating both challenges and opportunities. In this context, cross-border partnerships are emerging as linchpins for securing supply chains and aligning industrial ambitions with environmental goals. One such alliance—between Australian engineering firm Sedgman and French industrial player CHOVET—exemplifies how strategic collaborations are reshaping France’s minerals and metals sector amid the post-Green Deal landscape.

Sedgman and CHOVET: A Strategic Fit for France’s Green Transition

Sedgman’s partnership with CHOVET, announced in 2023, is a direct response to France’s urgent need to localize its critical mineral supply chains. While specific project details remain undisclosed, the alliance aligns with broader EU initiatives such as the Critical Raw Materials Act (CRMA), which mandates that the EU extract 10% of its strategic raw material needs domestically by 2030 and process 40% locally [4]. France, a key player in this transition, has allocated €500 million to its national minerals fund, managed in collaboration with Infravia Capital Partners, to finance projects across the value chain—from mining to recycling [2]. This funding aims to reduce dependency on China, which controls 69% of global rare earth mine production and dominates processing [4].

The Sedgman-CHOVET collaboration is particularly significant given France’s recent emphasis on domestic processing. For instance, Solvay’s rare earths plant in western France, supported by €20 million in tax credits, underscores the government’s commitment to building a self-sufficient industry [1]. By leveraging Sedgman’s expertise in mineral processing and CHOVET’s local industrial infrastructure, the partnership could accelerate France’s ability to meet CRMA benchmarks while adhering to stringent environmental standards.

Cross-Border Partnerships as Catalysts for Resilience

The EU’s strategy to secure critical minerals extends beyond domestic initiatives. In July 2025, the European Commission designated 13 non-EU Strategic Projects in countries like Canada, Brazil, and South Africa, aiming to diversify supply chains and reduce overreliance on single suppliers [5]. These projects, requiring €5.5 billion in initial investment, are designed to complement domestic efforts by ensuring access to materials essential for batteries, wind turbines, and solar panels [5]. Sedgman and CHOVET’s alliance, though focused on France, mirrors this dual approach of localizing production and fostering international collaboration.

Moreover, cross-border partnerships are critical for addressing the EU’s fragmented institutional landscape. The CRMA’s implementation has been hindered by limited private-sector engagement and coordination challenges among member states [3]. By forming alliances like Sedgman-CHOVET, companies can bridge these gaps, pooling technical expertise and capital to meet regulatory and environmental targets. For example, the U.S.-France Bilateral Clean Energy Partnership, which emphasizes cooperation on critical minerals, highlights how geopolitical alignment can enhance supply chain resilience [5].

Challenges and the Path Forward

Despite these opportunities, hurdles remain. The non-binding nature of EU partnerships and the high upfront costs of mineral processing infrastructure pose risks for investors. Additionally, the EU’s fragmented governance—spanning multiple directorates for energy, climate, and trade—complicates coherent policy execution [3]. However, the French government’s “France 2030” investment plan, which allocates significant funding for green technologies, provides a counterbalance [2]. This plan, coupled with the EU’s Just Transition Fund (€17.5 billion), offers financial incentives to mitigate socio-economic disruptions in fossil-fuel-dependent regions [1].

For Sedgman and CHOVET, success will depend on their ability to integrate sustainability into every phase of their operations. The EU’s Ecodesign for Sustainable Products Regulation, which mandates the use of recycled materials, will likely influence their project designs [2]. Investors should also monitor the EU’s 47 Strategic Projects, announced in 2025, which aim to strengthen domestic extraction and processing capacities [4]. These projects, combined with the Sedgman-CHOVET alliance, signal a shift toward a circular economy where resource efficiency and environmental stewardship are non-negotiable.

Conclusion

The Sedgman-CHOVET alliance is more than a corporate partnership—it is a microcosm of the EU’s broader strategy to decouple from geopolitical vulnerabilities while advancing its green agenda. As France and the EU navigate the complexities of the post-Green Deal era, cross-border collaborations will remain indispensable. For investors, the key lies in aligning with projects that not only meet regulatory and environmental benchmarks but also contribute to the long-term resilience of Europe’s resource sector.

Source:
[1] How Europe is vying for rare earth independence from China, [https://www.bbc.com/news/articles/cm2zp6m4gy7o]
[2] France, Germany, Italy seek private input for €2.5bn critical ... [https://www.euronews.com/green/2024/05/17/france-germany-italy-seek-private-input-for-25bn-critical-mineral-investment]
[3] The EU's partnerships around critical raw materials: Do its ambitions match reality? [https://ecdpm.org/work/eus-partnerships-around-critical-raw-materials-do-its-ambitions-match-reality]
[4] European Critical Raw Materials Act [https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/european-critical-raw-materials-act_en]
[5] EU energy transition: European Commission announces Strategic Projects outside of the EU to boost critical materials value chain [https://www.aoshearman.com/en/insights/eu-energy-transition-european-commission-announces-strategic-projects]