The European Commission has proposed a new law, the Critical Raw Materials Act, aimed at ensuring the EU’s access to a “secure, diversified, affordable and sustainable supply of critical raw materials”. The proposal outlines specific quotas for the mining, further processing, and recycling of these materials, with the aim of meeting 10% of demand through its own mining operations in 2030, 40% from local processing, and 15% from EU recycling capacities. The EU also aims to reduce its dependence on a single third country, limiting imports to no more than 65% of annual demand for any given material.
To achieve these targets, the Commission is proposing various measures at different levels of the EU. It will consider strategic raw material projects as projects in the public interest, allowing them to be approved more quickly. The proposal also includes updated lists of critical and strategic raw materials, monitoring of supply chains, and coordination of strategic raw material stocks between member states. Large companies will be obliged to audit their strategic raw material supply chains, and investment will be made in research, innovation, and skills related to critical raw materials.
See also: US and EU Negotiate Agreement on Critical Minerals for Electric Vehicle Batteries
Commission President Ursula von der Leyen emphasized that the new law will help the EU reach its climate goals, noting that raw materials are vital for manufacturing key technologies for the twin transition to a green and digital economy. She also stressed the need for cooperation with reliable trading partners worldwide to reduce dependence on a few countries and to diversify supply chains.
The EU acknowledges that it will never be self-sufficient in supplying critical raw materials and will continue to rely on imports for a majority of its consumption. However, the proposal aims to mitigate supply chain risks and improve economic resilience, as demonstrated by post-Covid bottlenecks and the energy crisis following Russia’s invasion of Ukraine. The Commission also proposes a “critical raw materials club” for like-minded countries willing to sustainably promote their own economic development through the creation of value chains in their own countries and secure global supply.
Thierry Breton, Commissioner for Internal Market, referred to critical raw materials as “the new gas and oil”, highlighting their importance to technologies and products of strategic importance. He noted that demand for these materials is increasing rapidly, leading to a global race for the new gas and oil. The Critical Raw Materials Act aims to extract, refine, recycle, and diversify to ensure secure and sustainable access to these materials, crucial for the green and industrial transformation.
