The Critical Raw Materials Act (CRMA), intended to secure Europe’s supply of key raw materials, enters into force in the EU today. The CRMA stipulates that ten percent of the annual demand for resources classified as strategic must be sourced from domestic mining in the EU by 2030. According to the industry association Eurometaux, this would require at least ten new mines as well as more than a dozen plants for further processing, as the CRMA also sets out targets for domestic downstream processing and recycling.
The main pillars of the CRMA
In addition to these targets, the CRMA lists a whole series of measures that still need to be finalized, such as a European platform for the joint purchasing of raw materials (Paywall), as already exists for gas. This is viewed critically in the industry, as the requirements of customers are too different given the large number of raw materials covered by the law. Therefore, there is likely to be a lot of discussion between politicians and the industry regarding the financing of the act. According to Bernd Schaefer, CEO of EIT RawMaterials, an independent organization of the European Union that promotes innovation along the value chain for raw materials, no equity from financial institutions is currently flowing into the sector.
For more information on the issues that still need to be addressed and how the European value chain for rare earths and lithium is positioned, we invite you to read our white paper on the subject.
Our whitepaper on the CRMA is available here.
Photo: iStock/Maksim Safaniuk
