The EU is taking steps to secure a reliable and sustainable supply of important raw materials, such as lithium, by introducing new regulations. Representatives from EU member states and the European Parliament recently agreed on a draft regulation aimed at boosting the refining, processing, and recycling of these materials in Europe.
Describing the plans, Vice-President Nicola Beer (FDP) noted that targeted economic incentives, such as central contact points for companies and streamlined approval processes, would provide businesses with much-needed certainty. Furthermore, a framework for strategic raw materials partnerships with other nations would position the EU as a desirable partner in global competition.
Hildegard Bentele (CDU), the rapporteur for the Christian Democrat EPP group, considered the regulation a "warning shot" to China. She emphasized that the Raw Materials Regulation would also promote the diversification of supply sources for critical materials like lithium, rare earths, and silicon.
Critical raw materials, as highlighted by the EU Commission, are vital for various technologies related to climate protection and digital, space, and defense. However, their supply is accompanied by increasing geopolitical, ecological, and social risks. For instance, over 90% of the EU's needs for several critical raw materials are often provided by a single country.
The draft regulation is expected to encourage domestic production, processing, and recycling of these materials. The EU aims to achieve at least 10% of its annual consumption of strategic raw materials through domestic extraction, 40% through processing, and 25% through recycling by 2030. It will also pursue diversification of supply through strategic partnerships.
The Raw Materials Regulation further aims to streamline permitting procedures, creating a more favorable environment for critical raw materials projects in the EU. Additionally, research and innovation will be encouraged to reinforce the raw materials supply chain resilience, while recycling practices will be promoted to reduce waste and dependence on single suppliers.
The Critical Raw Materials Act, which underpins these initiatives, sets clear benchmarks for domestic capacities, simplifies permitting procedures, and promotes sustainable and circular practices through targeted policies. All these steps will aim to reduce the EU's excessive reliance on a few third countries and bolster their strategic autonomy in critical raw materials distribution.
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