EU Raw Material Self-Sufficiency on the Horizon

Oct 27, 2023 Benn-Ibler Rechtsanwälte

Electric cars, solar panels, and smart phones – they all contain what are known as critical raw materials. However, the European Union is currently unable to source them reliably. Measures are being taken to ensure the long-term, secure supply and sovereignty of these raw materials. In future, the EU is hoping to become more competitive and, above all, more independent thanks to new legislation on critical raw materials.

The European Parliament has adopted its position on the recent proposal by a large majority. The next step is for the Parliament to start negotiations with the Council Presidency, aiming to reach an agreement at first reading.

For the EU’s environmental and digital transformation, critical raw materials are essential. Economic resilience, technological leadership, and strategic autonomy depend on securing their supply. Demand for these strategic raw materials will increase in the coming decades with the global shift towards renewable energy and the digitalisation of the economy and society.

In order to diversify supply, the EU considers it necessary to secure strategic partnerships between the EU and third countries.

The EU also aims to pave the way for long-term partnerships with knowledge and technology transfer, education and training for new jobs with better working and income conditions in partner countries. MEPs also want to see a greater focus on research and innovation in substitute materials and production processes. They also want to encourage the recovery of more raw materials from waste and provide targeted economic incentives for private investors to produce and recycle in Europe.

The aim is that no more than 65% of annual demand for critical raw materials should come from third countries. At least 10 per cent should be extracted, 40 per cent processed, and 15 per cent recycled.

European Parliament press release (14 September 2023)