EU has suggested a comprehensive set of initiatives to safeguard the EU’s access to a secure, diversified, cheap and sustainable supply of vital raw resources. For a large number of key industries, such as the digital industry, the aerospace industry, and the defence industry, need of critical raw materials are essential.
By establishing clear objectives for action, the Critical Raw Materials Act will give the EU the instruments it needs to guarantee its access to a safe and sustainable supply of vital raw materials.
In addition to a revised list of essential raw materials, the Act also identifies a list of strategic raw materials that, while being vulnerable to supply risks in the future, are essential to technologies that are critical to Europe’s green and digital ambitions as well as to defence and space applications. Both the critical and strategic raw material lists are incorporated into EU legislation by the Regulation.
In order to diversify EU supply by 2030 and set clear criteria for domestic capacity along the strategic raw material supply chain:
A single third country may not supply more than 65% of the EU’s annual consumption of any one strategic raw material at any relevant stage of processing. • At least 10% of the EU’s annual consumption for extraction; • At least 40% of the EU’s annual consumption for processing; • At least 15% of the EU’s annual consumption for recycling.
The EU will always be dependent on imports for the majority of its consumption and will never be self-sufficient in the provision of such basic resources. Hence, international commerce is crucial to sustaining global output and guaranteeing supply diversity.
To expand and diversify investment, encourage trade stability, and provide legal certainty for investors, the EU will need to step up its worldwide involvement with dependable partners. The EU will specifically look for cooperative relationships with developing nations and rising markets, especially as part of its Global Gateway policy.