Infographic – An EU critical raw materials act for the future of EU supply chains

The EU’s demand for base metals, battery materials, rare earths and more are set to increase exponentially as the EU divests from fossil fuels and turns to clean energy systems which necessitate more minerals.

The EU green transition will require the build-up of local production of batteries, solar panels, permanent magnets, and other clean tech. Abundant access to a range of raw materials will be needed to address the corresponding demand.

• European Green Deal (background information)

The EU’s demand for base metals, battery materials, rare earths and more are set to increase exponentially as the EU divests from fossil fuels and turns to clean energy systems which necessitate more minerals.

The EU green transition will require the build-up of local production of batteries, solar panels, permanent magnets, and other clean tech. Abundant access to a range of raw materials will be needed to address the corresponding demand.

• European Green Deal (background information)

industrial value chains: non-energy raw materials are linked to all industries across all stages of the supply chain

strategic technologies, such as space and defence: technological progress and increasing quality of life depends on a varying and growing number of raw materials

climate, energy and environment: clean technology requires raw materials – they are irreplaceable in solar panels, wind turbines, electric vehicles and energy-efficient lighting

Local production is key for the EU’s energy and mobility systems overhaul, which is in part driven by the REPowerEU plan and the 2035 internal combustion engine ban.

The critical raw materials act is therefore an essential piece of the puzzle in this generational societal transition.

• REPowerEU (background information)

Local production is key for the EU’s energy and mobility systems overhaul, which is in part driven by the REPowerEU plan and the 2035 internal combustion engine ban.

The critical raw materials act is therefore an essential piece of the puzzle in this generational societal transition.

• REPowerEU (background information)

diversifying the EU’s imports to reduce strategic dependencies

improving the EU’s capacity to monitor and mitigate risks of disruptions to the supply of critical raw materials

improving circularity and sustainability

EU industrial policy (background information)

Metals, minerals and natural materials are part of our daily lives. Those raw materials that are most important economically and have a high supply risk are called critical raw materials.

Critical raw materials are essential to the functioning and integrity of a wide range of industrial ecosystems.

ome sectors are especially strategic for the EU’s renewable energy, digital, space and defence objectives.

Out of the 34 critical raw materials identified, a specific strategic raw materials (SRMs*) list (see in dark yellow below the 17 strategic raw materials) has been created for the materials expected to grow exponentially in terms of supply, which have complex production requirements and thus face a higher risk of supply issues.

This list will be reviewed regularly.

climate, energy and environment: clean technology requires raw materials – they are irreplaceable in solar panels, wind turbines, electric vehicles and energy-efficient lighting

Critical raw materials are used everywhere.

Without CRMs most sections of society would not be able to function, as they are found in many everyday appliances and in products essential to the economy of every member state.

vibrating technology in phones = tungsten

electric vehicles = lithium, cobalt and nickel

wind turbines = boron

semiconductors = silicon metal

manufacture of glass and production of fertilisers for plant growth = borates

building and flying aeroplanes = magnesium and scandium

CRMs are mostly sourced outside the EU. The EU will never be self-sufficient but aims to diversify its supply.

Currently, for certain critical raw materials, the EU is solely dependent on one country:

• China provides 100% of the EU’s supply of heavy rare earth elements
• Turkey provides 98% of the EU’s supply of boron
• South Africa provides 71% of the EU’s needs for platinum

Source: European Commission

To reduce dependence on third countries to access critical raw materials, the EU set the following objectives for 2030:

EU EXTRACTION:
at least 10% of the EU’s annual consumption from EU extraction

EU PROCESSING:
at least 40% of the EU’s annual consumption from EU processing

EU RECYCLING:
at least 25% of the EU’s annual consumption from domestic recycling

EXTERNAL SOURCES:
not more than 65% of the Union’s annual consumption of each strategic raw material at any relevant stage of processing from a single third country

To achieve this, the EU will step up trade actions, which will include:

• a Critical Raw Materials Club for all like-minded countries willing to strengthen global supply chains
• strengthening the World Trade Organization
• expanding its network of Sustainable Investment Facilitation Agreements and Free Trade Agreements
• pushing harder on enforcement to combat unfair trade practices

he EU’s objective to cut greenhouse gas emissions by at least 55% by 2030 sets Europe on a responsible path to becoming climate neutral by 2050.

This requires delivering the twin transition, decarbonising the energy system and ensuring autonomy through access and transformation of critical raw materials.

• Fit for 55 (background information)

Source: European Commission

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Sursa: consilium.europa.eu