Abstract
Critical raw materials (CRMs) are not mere commodities but the essential building blocks of modern technologies, prosperity, and security. As global demand accelerates, a strategic race is emerging to secure access to these vital resources, fuelling competition and geopolitical tension. This article examines the European Union’s vulnerable starting position in this contest, given its limited domestic supply of CRMs compared to others, and argues for a proactive, coherent policy response by Europe. Central to this is deepening integration of the EU Single Market by mainstreaming circular economy principles and boosting material productivity – stagnant since the 1970s – and creating demand-side incentives. The article also proposes a Critical Raw Materials Efficiency First Principle, as well as underscoring the importance of public-private collaboration and international partnerships. Delivering this vision will take time, and sustained political will is therefore key.
Introduction
As Europe navigates a world defined by geopolitical instability, climate urgency, and economic challenges, one imperative is becoming increasingly clear: the European Union must secure its strategic autonomy in critical sectors. From energy to semiconductors, the EU is prioritising resilience and self-sufficiency. But one sector remains underappreciated despite its foundational role in Europe’s food and industrial security – fertilisers.
Fertilisers, and the broader ammonia value chain, are not merely agricultural inputs. They are strategic assets. Ensuring their availability, affordability, and sustainability is central to Europe’s food security, industrial competitiveness, and clean energy transition. Any serious strategy for European strategic autonomy must therefore place fertilisers and ammonia at its core.
Food security: fertilisers feed the world
The link between fertilisers and food production is direct and unquestionable: 50 per cent of global food production depends on the use of fertilisers. High-quality fertilisers are crucial to helping sustain agricultural productivity and provide healthy and nutritious food for all. Without fertilisers, harvests would shrink dramatically and food prices would soar.
Reducing dependency: tariffs and Russian fertilisers
The EU is in the process of successfully decoupling its economy from Russia as a matter of European security and strategic autonomy. At the same time, Europe has developed another dependency – this time on fertilisers. Between the 2020/2021 and 2023/2024 agricultural seasons, fertiliser imports from Russia increased by 117 per cent. European farmers have become progressively reliant on fertilisers that fall short of meeting high production standards aimed at curbing emissions.
In June 2025, EU policymakers decided to impose gradual tariffs on Russian fertilisers. Tariffs will enable Europe to reduce strategic dependency and cut off an important revenue stream to Russia’s war machine while safeguarding the EU’s agricultural sector and maintaining its industrial resilience.
By levelling the playing field, tariffs are expected to ensure that European producers can continue supplying domestic farmers with sustainable fertilisers for the foreseeable future.
Ammonia: a hidden backbone of critical value chains
Fertiliser and ammonia producers are cornerstones of much more than agriculture. The same ammonia used in fertiliser production feeds into a wide range of essential sectors that Europeans rely on every day.
- Transport: AdBlue, a diesel exhaust fluid that reduces harmful emissions from trucks and buses, is produced from urea – a direct fertiliser derivative. Without a stable supply of AdBlue, Europe’s transport and logistics networks would grind to a halt.
- Healthcare: medical-grade gases, derived from nitrogen and other chemical processes used in fertiliser production, are critical for surgeries and respiratory treatments.
- Food and beverage: carbon dioxide, often produced as a by-product in fertiliser manufacturing, is essential for carbonated drinks, food preservation, and meat processing.
- Industrial uses: ammonia and its derivatives are used in plastics, textiles, cleaning products, and refrigeration. Disruptions to fertiliser production ripple far beyond the farm.
By securing domestic fertiliser and ammonia production, the EU is also securing the continuity and resilience of these vital sectors. Neglecting this would be not only an economic miscalculation but also a strategic vulnerability.
Clean ammonia: a workhorse of the hydrogen economy
The EU fertiliser industry currently produces about 40 per cent of total European hydrogen as raw material of ammonia production. It is therefore uniquely placed to contribute to the development of a green hydrogen economy in Europe. Low-carbon ammonia will be a critical vehicle in the EU’s efforts to decarbonise hard-to-abate sectors.
- Food system decarbonisation
Fertiliser production is currently energy and carbon intensive, but transitioning to low-carbon hydrogen can dramatically reduce emissions from the production of agricultural inputs. Switching to fertilisers produced using low-carbon technologies can reduce the carbon footprint of a loaf of bread by up to 15 per cent.
- Long-haul shipping
Over 90 per cent of world trade is carried across the world’s oceans. International shipping is the backbone of the global economy but also a major source of emissions. Clean ammonia is among the main candidates for decarbonising maritime transport. It can be used by both internal combustion engines and fuel cells, offering potential for retrofits of ships that use internal combustion engines. Its use as a fuel will almost eliminate particulate matter and black carbon emissions, and CO2 if produced using clean technologies.
- Hydrogen carrier
As Europe builds a hydrogen economy, clean ammonia offers a cost-effective means of storing and transporting hydrogen across borders and continents. Ammonia has a higher energy density compared with liquid hydrogen, making it a more compact and practical option for long-distance transportation and storage. Using ammonia as a hydrogen carrier in liquid form has the advantage of an energy density three times that of compressed hydrogen and 1.5 times that of liquefied hydrogen. Using ammonia to export hydrogen over long distances, therefore, requires far fewer ships to transport the same amount of energy.
- Clean energy storage
Ammonia, a compound composed of nitrogen and hydrogen, is emerging as a game-changing solution in the realm of energy storage. Ammonia can be used to store renewable energy: it is rapidly deployable, easy to handle, and produces no carbon emissions in the case of direct combustion. Its physical properties allow for efficient compression and storage at moderate pressures, simplifying its handling and distribution.
These emerging roles further underline the need for a strong and competitive European ammonia industry – one that is not only clean but also autonomous.
Conclusion: fertilisers as a strategic asset
Strategic autonomy cannot be achieved through words alone. It requires political will, investment, and strategic mapping of where Europe’s vulnerabilities – and strengths – lie. Fertilisers and the ammonia value chain are essential to our food systems, our industries, and our green future. Recognising this is the first step towards securing Europe’s autonomy in a more uncertain world.
Fertilisers feed Europe. They fuel its trucks, preserve its food, power its surgeries, and hold the key to decarbonising its industries. As the EU builds its strategic autonomy, it must ensure that this cornerstone sector is not left exposed.
Fertilizers Europe
Fertilizers Europe represents the majority of fertilizer producers in the European Union.
The European fertilizer industry is vital for food security and the clean transition. We strive to provide farmers with high quality and sustainable nutrients which are essential for ensuring the strategic autonomy and sustainability of food systems, while boosting the decarbonization of the European economy.
