The European Parliament has granted final approval to the Critical Raw Materials Act, marking a significant step towards enhancing the European Union’s supply and sovereignty of essential raw materials.
The legislation aims to bolster the EU’s competitiveness and autonomy by streamlining bureaucratic processes, promoting innovation across the value chain, and supporting small and medium-sized enterprises (SMEs).
Additionally, the act seeks to advance research, encourage alternative materials development, and implement eco-friendly mining and production methods.
Key Highlights
Incentives for Mining and Recycling Projects: The legislation establishes economic incentives and a more stable business framework for mining and recycling initiatives, featuring expedited and simplified authorization procedures.
Focus on Substituting Raw Materials: MEPs emphasized a stronger emphasis on the production and scale-up of materials capable of substituting critical raw materials. Targets were set to promote the extraction of strategic raw materials from waste products.
Support for SMEs: Recognizing the importance of reducing red tape for companies, particularly SMEs, MEPs insisted on measures to create a more favorable environment for businesses.
Strategic Partnerships: MEPs underscored the significance of strategic partnerships between the EU and third countries concerning critical raw materials. These partnerships aim to diversify the EU’s supply and include knowledge transfer, technology sharing, training, and upskilling for new jobs.
Lead MEP Nicola Beer (Renew, DE) commented, “This legislation is an industrial policy blueprint for a secure and sustainable supply of raw materials in Europe.”
She highlighted the creation of project-planning certainty for private investors, emphasizing single points of contact for companies and straightforward authorization procedures.
Next Steps
The legislation received overwhelming support with 549 votes in favor, 43 against, and 24 abstentions.
Formal endorsement by the Council is the next step before its publication in the Official Journal.
Background
Critical raw materials, including cobalt, lithium, and others, play a crucial role in the EU’s green and digital transitions.
Ensuring their supply is vital for the EU’s economic resilience, technological leadership, and strategic autonomy, especially in the context of geopolitical factors.
The legislation aligns with proposals from the Conference on the Future of Europe, focusing on sustainability, economic autonomy, and resilience in strategically significant sectors.
The global shift towards renewable energies and digitalization is expected to drive increased demand for these critical raw materials in the coming decades.
