The European Union’s competitiveness, climate-neutral goals and ability to sustain the green and digital transitions are closely tied to access to critical raw materials (CRMs). These materials are essential for a wide array of technologies, and their secure, resilient, and sustainable supply is a key factor in the EU’s strategic autonomy. The EU’s Critical Raw Materials Act (CRMA), which came into force on 23 May 2024, aims to address these needs.
The CRMA lists 34 CRMs, of which 17 are classified as ‘strategic raw materials’ (SRMs). These SRMs are crucial for the EU’s ability to power critical sectors, from renewable energy technologies to digital infrastructure. The Act sets out a number of ambitious targets to ensure a reliable supply of SRMs by 2030, including:
- Domestic production: The EU should mine at least 10% of its annual needs for SRMs.
- Processing: The EU should process 40% of its SRM needs within its borders.
- Recycling: The EU should aim to cover 25% of its SRM needs through recycling.
- Diversification of imports: The EU should reduce dependence on any single country for more than 65% of its SRM supply.
These measures aim to reduce supply chain vulnerabilities and improve the sustainability of CRM consumption in the EU. However, there are concerns about whether the EU can meet these targets by 2030. Many experts have pointed out weaknesses in the CRMA, such as the lack of specific EU funding for the initiative and uncertainty over whether efforts to accelerate mining activities will be effective.
To address these challenges, several reports and proposals have suggested ways to enhance the EU’s CRM policy. For example:
- The Draghi report calls for the establishment of a dedicated EU CRM platform to create a more coordinated strategy covering the entire CRM value chain.
- The Letta report suggests the EU could use joint purchasing mechanisms to create strategic reserves of key CRMs, which would strengthen the single market and enhance supply security.
- Additional proposals include boosting recycling and circularity, improving the coherence of EU laws affecting the CRM sector, and fostering international partnerships to diversify supply sources.
The CRMA is a step in the right direction, but its success will depend on effective implementation of these measures and the ability to address the highlighted weaknesses.
