By 2030, the EU should no longer be dependent on a single third country for more than 65% of a given strategic critical raw material, according to the Commission. This is one of the objectives it wants to set in the future regulation on critical raw materials, unveiled on 16 March. EUROPE previously outlined the shape of this future regulation (see EUROPE 13137/1).
The EU is well aware that it will continue to be largely dependent on third countries for its supplies. However, it is important to have the most strategic approach possible to sourcing and to avoid dependency on any one country for any one material.
This involves partnerships on raw materials, like those already concluded with Canada, Namibia, Ukraine and Kazakhstan. So what does the EU have to offer these partners, who are richer in raw materials? “We can help these countries to develop their own sustainable value chains, we can help them with private investment and public funding, like with the Global Gateway”, answered the European Commissioner for Trade, Valdis Dombrovskis. Some partners also need help estimating their assets, according to the European Commissioner for Internal Market, Thierry Breton: “We will help them map their resources”.
The EU’s other solution for securing supply is the idea of a ‘raw materials club’. This club should “bring together consuming and resource-rich countries to promote the secure and sustainable supply of critical raw materials”, says the Commission in a statement on raw materials. Participants in the ‘club’ will then be able to share useful information in the field, promote investments, discuss sustainable investments, facilitate access to markets, etc.
Promoting extraction, processing and recycling in the EU
The EU should extract the ores, minerals and concentrates needed to produce at least 10% of the Union’s annual consumption of strategic raw materials by 2030, “to the extent that the Union’s reserves allow for this”, the Commission says.
Although this target seems low, it does represent an increase, considering that about 3% of the raw materials consumed in the EU are extracted there at the moment, stated Thierry Breton.
Indeed, 97% of the magnesium imported into the EU comes from China alone. Beijing also processes all the rare earths used in permanent magnets worldwide, according to European Commission data.
The future regulation aims to facilitate the establishment of projects for the extraction, processing and recycling of critical raw materials in the EU. To this end, the Commission proposes a list of critical raw materials for which future projects can be facilitated. A second list mentions fifteen critical, but also strategic, raw materials for which the acceleration and simplification procedures go even further.
These strategic raw materials include bismuth, boron, cobalt, copper, nickel, graphite and rare earths for permanent magnets.
For projects involving the extraction, processing or recycling of these strategic raw materials, the competent authorities in the Member States will have to simplify and shorten the permit procedures: less than two years for extraction projects and less than one year for processing and recycling projects (see EUROPE 13137/1).
The authorities may also consider that the project in question has a public interest that may, in certain cases and under certain conditions, allow the authorisation of a project that would have a negative impact on the environment, because “the public interest served by the project overrides those impacts”.
On the recycling side, the Commission is aiming for a target of 15% recycled strategic raw materials in the EU by 2030. To this end, it requires Member States to implement certain actions, including on mining waste (see EUROPE 13137/1).
Monitoring the situation and needs
Member States will have to develop national programmes for the exploration of their geological resources and undertake extensive work to monitor needs and risks.
These efforts can be facilitated by the European Committee for Critical Raw Materials, which will also be mobilised for the other aspects of the regulation.
Research and development
The Commission also wants to build on the skills in the EU that can support the deployment of technologies from critical raw materials. To this end, a ‘raw materials academy’ should promote the necessary skills in the field.
The draft regulation must now be analysed by the Member States and the European Parliament before it can enter into force.
The text has so far been welcomed by stakeholders, such as Eurométaux, which sees it as a potential paradigm shift for EU policy in this area. However, this representative of non-ferrous metals producers said it hoped that the scope would be extended to more materials, such as aluminium, silver and zinc, which it considers crucial.
See the regulation: https://aeur.eu/f/5uq (Original version in French by Léa Marchal)