In a recent panel discussion, experts explored the challenges Europe faces in securing the raw materials needed for its electric vehicle (EV) transition. Moderated by Euronews reporters Jack Schickler and Hannah Brown, the debate focused on the Critical Raw Materials (CRM) Act, the need for a robust supply chain, and the steps Europe must take to ensure a sustainable, zero-emissions transport future.
The shift to electromobility and the CRM Act
The European automotive industry has just over a decade to complete its transition to electromobility, and the CRM Act is pivotal in this journey. The Act aims to ensure Europe’s access to the critical raw materials, including lithium, nickel, cobalt and graphite, that are essential for EV batteries. Demand for these materials is expected to increase up to ninefold by 2040, creating significant challenges in sourcing, processing and recycling them.
Javier Felipe, an industrial engineer and European Parliament member, emphasized the importance of affordable energy for mining and processing companies to remain competitive. He also highlighted the need for policy coherence and best-practice sharing to support strategic projects and overcome the complexities of European regulations.
Ethical sourcing and the role of global partnerships
The ethical sourcing of these vital materials remains a central concern. Julia Poliscanova, Senior Director at Transport & Environment, noted that while Europe is advancing its green energy transition, it is still behind in securing the necessary minerals. She stressed that Europe has yet to command the supply chain for key materials such as lithium, nickel, and cobalt. To address this, partnerships with global stakeholders are essential for sustainably extracting, processing, and using these resources.
James Watson, Director General of Eurometaux, echoed these points, suggesting that the EU’s Clean Industrial Deal could fill gaps in the CRM Act, particularly in financing. Watson called for the establishment of a critical raw materials bank and greater investment in processing within the EU. He emphasized that Europe needs more mines, processing facilities, and recycling initiatives to meet its future needs.
Navigating complex EU-China relations
The EU’s relationship with China, a major player in the global EV market, also emerged as a key issue. With U.S. tariffs affecting China’s EV market, Europe may have more leverage than it realizes. Poliscanova suggested that Europe should be more assertive in its dealings with China, particularly in terms of technology transfer and joint ventures to scale up EV production. However, Watson cautioned that some critical metals are largely controlled by China, and Europe must carefully manage this relationship to avoid driving up prices or limiting its options.
Addressing the “Lithium paradox”
Peter Tom Jones, Director at KU Leuven Institute for Sustainable Metals and Minerals, highlighted the “lithium paradox” in Europe, where the continent could easily be self-sufficient in lithium but currently lacks active lithium mines and processing facilities. While projects are in the pipeline, the fact that Europe still lacks a spodumene-to-lithium hydroxide plant is a significant hurdle.
The road ahead: Ethics and sustainability in battery manufacturing
As Europe aims to meet its sustainability goals, there is growing concern about ensuring the ethical production of batteries. The REACH initiative, which deals with chemicals and hazard management, will be revised in 2025 to support the safe production and processing of critical raw materials.
While Europe has strong labor standards and a good relationship with unions in battery production, challenges remain in tracing materials throughout the supply chain. Poliscanova pointed out that even if batteries are recycled in Europe, it’s unclear how sustainably the materials were sourced. Collaboration between carmakers, battery manufacturers, and miners is essential to ensure the ethical and transparent sourcing of materials.
Lessons from Northvolt’s struggles
The bankruptcy filing of Swedish battery company Northvolt raised questions about Europe’s readiness to support its green transition. Poliscanova acknowledged that failure is part of innovation but emphasized the need for patience and industrial support to scale operations. The lack of time, patience, and support for technology transfers has left Europe lagging behind, she argued.
The future of Europe’s EV transition
Europe’s transition to a sustainable, zero-emissions transport future hinges on securing a reliable and ethical supply chain for critical raw materials. While the continent has made progress in battery processing and recycling, it faces significant challenges in sourcing and scaling operations to compete globally. The panelists agreed that Europe must take bold steps to address these challenges, secure strategic partnerships, and invest in the necessary infrastructure to succeed in the green energy transition.
