The European Union’s Critical Raw Materials Act (CRMA) has officially become law, marking a significant milestone in the region’s efforts to bolster domestic supply chains and promote economic and environmental sustainability. The act, which was proposed as part of the Green Deal Industrial Plan for the Net-Zero Age, was approved by the EU Council in March 2024, following approval by the EU Parliament in December of the previous year.
The CRMA identifies 34 critical raw materials, with 16 of them designated as strategic raw materials. Among these are rare earth elements and lithium, essential for the transition to electromobility and renewable power generation. The act aims to reduce the EU’s dependence on imports from non-member states and enhance economic resilience by setting targets for domestic mining, processing, and recycling of these critical materials.
European Commission President Ursula von der Leyen highlighted the growing importance of rare earths and lithium, stating that they will soon surpass oil and gas in economic significance. Despite the EU’s potential to meet the CRMA targets for lithium production, challenges remain, including political and social resistance to mining projects and a lack of end-to-end processing capacity for rare earth elements.
The CRMA’s focus on rare earth permanent magnets underscores the need for a coordinated effort from government and industry to meet 2030 extraction and processing targets. Dialogue with the public, streamlined permitting processes, and cooperation with industry stakeholders are crucial for the success of the CRMA and the EU’s competitiveness in the global market.
While the EU faces challenges such as high energy prices and bureaucratic hurdles, the implementation of the CRMA presents opportunities for the region to strengthen its supply chain resilience and reduce reliance on imports from foreign sources. By investing in responsible mining projects and fostering a dialogue with the public, the EU can secure a sustainable future for its critical raw materials sector.
