The new rules on critical raw materials will enable the EU to diversify its sources of imports and increase extraction, processing and recycling in member states.
The EU's demand for base metals, battery materials, rare earths and more is set to increase exponentially as the EU divests itself of 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.
In addition, critical raw materials are important to the EU for:
Local production is key for the EU's energy and mobility systems overhaul, which is in part driven by the REPowerEU plan and the EU's 2035 automotive emissions targets.
In March 2024, the Council adopted the European critical raw materials act, as demand for rare earths is expected to increase exponentially in the coming years.
Critical raw materials (CRMs) are raw materials of high economic importance for the EU, with a high risk of supply disruption due to the concentration of their sources and the lack of any good, affordable substitutes.
The act aims to:
The new rules will also strengthen Europe's strategic autonomy.
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.
Some 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 list of strategic raw materials (SRMs*) has been created for the materials expected to grow exponentially in terms of supply, all of which have complex production requirements and thus face a higher risk of supply issues.
This list will be reviewed regularly.
*SRMs in HREEs and LREEs: Nd, Pr, Tb, Dy, Gd, Sm, and Ce
Critical raw materials are used everywhere. Without CRMs, most sections of society would be unable to function, as they are found in many everyday appliances and in products essential to the economy of every member state, such as smartphones, electric cars, wind turbines, plant fertilisers or aircraft.
