Mechanical Engineering
Critical Raw Materials
EU has its list of Critical Raw Materials (CRMs) for the EU, which is subject to a regular review and update. The last dated 2024.
CRMs combine raw materials of high importance to the EU economy and of high risk associated with their supply.
CRMs combine raw materials of high importance to the EU economy and of high risk associated with their supply.
The EU Activity
EU has taken several steps to secure a sustainable supply of raw materials, crucial for the EU's economy and key sectors like automotive, aerospace, and renewable energy.
This effort includes the periodic publication and updating of the Critical Raw Materials (CRMs) list:
- 2011: First list of 14 CRMs published as part of the Raw Materials Initiative.
- 2014: Revised list of 20 CRMs published in the 2014 Communication.
- 2017: Third list of 27 CRMs with a refined methodology, detailed in the 2017 Communication.
- 2020: Fourth list of 30 CRMs, as described in the 2020 Communication.
- 2024: Fifth list of 70 CRM, as listed in the REGULATION (EU) 2024/1252
The European Raw Materials Alliance, launched in 2020, aims to secure a sustainable supply of raw materials in Europe, focusing initially on rare earth elements and permanent magnets. This industry-driven initiative, led by EIT RawMaterials, will address opportunities, barriers, and investment cases to support the circular economy and the EU Green Deal.
2024 List of critical raw materials for the EU
On 11 April 2024, the REGULATION (EU) 2024/1252 Establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 was published, listing 70 critical raw material for the EU:
antimony, arsenic, bauxite/alumina/aluminium, baryte, beryllium, bismuth, boron, cobalt, coking coal, copper, feldspar, fluorspar, gallium, germanium, hafnium, helium, heavy rare earth elements, light rare earth elements, lithium, magnesium, manganese, graphite, nickel — battery grade, niobium, phosphate rock, phosphorus, platinum group metals, scandium, silicon metal, strontium, tantalum, titanium metal, tungsten, vanadium.
antimony, arsenic, bauxite/alumina/aluminium, baryte, beryllium, bismuth, boron, cobalt, coking coal, copper, feldspar, fluorspar, gallium, germanium, hafnium, helium, heavy rare earth elements, light rare earth elements, lithium, magnesium, manganese, graphite, nickel — battery grade, niobium, phosphate rock, phosphorus, platinum group metals, scandium, silicon metal, strontium, tantalum, titanium metal, tungsten, vanadium.
Main global and domestic producers of CRMs
The EU’s industry and economy heavily rely on international markets for access to many important raw materials, as they are predominantly produced and supplied by third countries. Although the EU has some domestic production of critical raw materials, such as hafnium, it largely depends on imports from non-EU countries.
The supply of many critical raw materials is highly concentrated. For instance, China provides 100% of the EU’s supply of heavy rare earth elements (REE), Turkey provides 99% of the EU’s boron supply, and South Africa meets 71% of the EU’s platinum needs, including an even higher share of the platinum group metals like iridium, rhodium, and ruthenium.
These risks are exacerbated by low substitution and recycling rates, making the EU vulnerable to supply disruptions.
The supply of many critical raw materials is highly concentrated. For instance, China provides 100% of the EU’s supply of heavy rare earth elements (REE), Turkey provides 99% of the EU’s boron supply, and South Africa meets 71% of the EU’s platinum needs, including an even higher share of the platinum group metals like iridium, rhodium, and ruthenium.
These risks are exacerbated by low substitution and recycling rates, making the EU vulnerable to supply disruptions.
Critical Raw Materials Act
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The EU Critical Raw Materials Act is a European Regulation adopted in May 2024 aimed at ensuring a secure and sustainable supply of critical raw materials essential for the EU’s economy and its green and digital transitions. Recognizing the strategic importance of these materials, the act seeks to reduce the EU’s dependency on non-EU countries and enhance the resilience of its supply chains.
Key Objectives and Measures
Importance
Key Objectives and Measures
- Diversification of Supply Sources: The act promotes the diversification of supply sources for critical raw materials by encouraging partnerships with non-EU countries and fostering international cooperation.
- Boosting Domestic Production: It aims to increase the EU’s domestic production of critical raw materials where feasible, including the extraction, processing, and recycling within the Union.
- Enhancing Recycling and Circular Economy: The act emphasizes improving recycling rates and integrating a circular economy approach to reduce dependency on primary raw materials and minimize environmental impact.
- Research and Innovation: It supports research and innovation to develop alternative materials, improve extraction and processing technologies, and find substitutes for critical raw materials.
- Strategic Stockpiling: The act considers strategic stockpiling of critical raw materials to buffer against supply disruptions and ensure continuity in key sectors.
- Regulatory Framework: Establishing a clear and efficient regulatory framework to facilitate the development of critical raw materials projects within the EU, ensuring they are economically viable and environmentally sustainable.
Importance
- Economic Security: Ensuring a stable supply of critical raw materials is vital for the EU’s economic security, competitiveness, and industrial leadership.
- Green and Digital Transition: These materials are essential for technologies needed in the green transition (like renewable energy and electric vehicles) and the digital transition (such as ICT and advanced manufacturing).
- Reduced Dependency: By diversifying supply and enhancing domestic capabilities, the EU aims to reduce its strategic vulnerabilities associated with over-reliance on a few non-EU countries.
Setting Priorities for Action
The Act introduces an updated list of critical raw materials for the entire EU economy and identifies strategic raw materials crucial for green, digital, defense, and aerospace technologies.
Setting Benchmarks by 2030 for Domestic Capacities
The Act sets the following benchmarks for the strategic raw materials value chain and supply diversification:
Creating Secure and Resilient Supply Chains
The Act aims to streamline permitting procedures for critical raw materials projects, reduce administrative burdens, and ensure high social and environmental protection. Strategic projects will benefit from easier access to finance and shorter permitting times (27 months for extraction permits and 15 months for processing and recycling permits). EU countries will also develop national programs for exploring geological resources.
Supply Risk Preparedness and Mitigation
To ensure supply chain resilience, the Act introduces supply chain monitoring, stress-testing, and coordinates strategic stocks. It also sets risk preparedness obligations on large companies producing strategic technologies.
Improving Sustainability and Circularity of Critical Raw Materials
EU countries will improve the collection and recycling of critical raw material-rich waste. They will also investigate the potential recovery of critical raw materials from extractive waste. The Act sets requirements for the recyclability and recycled content of permanent magnets and empowers the Commission to establish rules for the environmental footprint of critical raw materials.
Diversifying the Union's Imports of Raw Materials
The Act emphasizes the importance of international trade to support global production and supply diversification through:
Coordination
The Act foreseen a European Critical Raw Materials Board, composed of EU countries and the Commission, to advise on and coordinate the implementation of the measures and discuss strategic partnerships with third countries.
The Act introduces an updated list of critical raw materials for the entire EU economy and identifies strategic raw materials crucial for green, digital, defense, and aerospace technologies.
Setting Benchmarks by 2030 for Domestic Capacities
The Act sets the following benchmarks for the strategic raw materials value chain and supply diversification:
- At least 10% of the EU’s annual consumption for extraction.
- At least 40% of the EU’s annual consumption for processing.
- At least 25% of the EU’s annual consumption for recycling.
- No more than 65% of the EU’s annual consumption from a single third country.
Creating Secure and Resilient Supply Chains
The Act aims to streamline permitting procedures for critical raw materials projects, reduce administrative burdens, and ensure high social and environmental protection. Strategic projects will benefit from easier access to finance and shorter permitting times (27 months for extraction permits and 15 months for processing and recycling permits). EU countries will also develop national programs for exploring geological resources.
Supply Risk Preparedness and Mitigation
To ensure supply chain resilience, the Act introduces supply chain monitoring, stress-testing, and coordinates strategic stocks. It also sets risk preparedness obligations on large companies producing strategic technologies.
Improving Sustainability and Circularity of Critical Raw Materials
EU countries will improve the collection and recycling of critical raw material-rich waste. They will also investigate the potential recovery of critical raw materials from extractive waste. The Act sets requirements for the recyclability and recycled content of permanent magnets and empowers the Commission to establish rules for the environmental footprint of critical raw materials.
Diversifying the Union's Imports of Raw Materials
The Act emphasizes the importance of international trade to support global production and supply diversification through:
- Trade agreements to secure and diversify critical raw material trade.
- Expanding the EU’s network of strategic partnerships with a value chain approach and sustainability focus.
- Using the Global Gateway for infrastructure projects along the raw materials value chain.
- Establishing an EU export credit facility to reduce investment risk abroad.
- Tackling unfair trade practices related to raw materials and enhancing enforcement.
Coordination
The Act foreseen a European Critical Raw Materials Board, composed of EU countries and the Commission, to advise on and coordinate the implementation of the measures and discuss strategic partnerships with third countries.
