The European Union is stepping up efforts to secure strategic resources by pooling demand across member states.
The European Commission officially launched its platform for the joint procurement of raw materials on Monday. The aggregation of demand forms part of the practical implementation of the Critical Raw Materials Act (CRMA), adopted in May 2024. A comparable mechanism for the joint purchase of hydrogen was introduced last July.
The EU expects the new platform to strengthen the negotiating position of European companies on global markets. By coordinating purchases, the initiative aims to achieve more favorable pricing and more stable supply conditions. The focus is on rare earth elements and materials critical to the defense and battery industries.
The Commission’s procurement process is organized in rounds, with companies able to register for the first round as of yesterday. Results will be shared with participants at the end of each round, with initial outcomes expected in September, according to Reuters.
Industry stakeholders had already voiced criticism when the CRMA was adopted, pointing to company-specific differences in raw material requirements that may limit the effectiveness of joint purchasing mechanisms.
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