The Critical Raw Materials Act (CRMA) has been formally adopted by the European Council, marking the conclusion of the decision making process. This regulation is aimed at ensuring a “secure and sustainable supply of critical raw materials” and will establish a comprehensive framework to address key aspects of raw material procurement and management.
The EU’s demand for base metals, battery materials, rare earths and more are set to increase exponentially as the EU divests from fossil fuels and turns to clean energy systems which require more minerals.
The EU green transition will require the build-up of local production of batteries, solar panels, permanent magnets and other clean tech. The final approval of the act aims to address this.
The CRMA, together with the Net-Zero Industry Act and the reform of the electricity market design, is one of the flagship legislative initiatives under the Green Deal Industrial Plan that was presented by Commissioner Thierry Breton on February 1, 2023. The Council adopted the negotiation mandate on June 30, and the two co-legislators reached a provisional agreement on November 13, 2023.
Following approval from both the European Parliament and the Council, the legislative act has been finalized. Once signed by the President of the European Parliament and the President of the Council, the regulation will be published in the Official Journal of the European Union and will come into effect 20 days after publication.
The CRMA introduces several significant measures, including clear deadlines for permit procedures for EU extraction projects, provisions for recognizing strategic projects by the Commission and member states, mandatory supply-chain risk assessments and requirements for national exploration plans by member states. The regulation also ensures the EU’s access to critical and strategic raw materials through benchmarks on extraction, processing, recycling and diversification of import sources.
The final text of the CRMA identifies two lists of materials — 34 critical and 17 strategic — that are essential for green and digital transitions for applications such as electric vehicles, as well as in the defense and space industries. The CRMA establishes benchmarks for the EU’s annual consumption of raw materials, including targets for local extraction, processing within the EU and use of recycled materials.
To support the development of strategic projects, member states will establish single points of contact at relevant administrative levels and stages in the critical raw materials value chain. Permit issuance timelines are also defined, with extraction projects to receive permits within 27 months and recycling/processing projects within 15 months, with certain exceptions to engage local communities and conduct environmental impact assessments.
Furthermore, the CRMA mandates that large companies manufacturing strategic technologies conduct risk assessments of their supply chains to identify vulnerabilities.
“With the Critical Raw Materials Act we want to turn the challenges of our dependencies into strategic autonomy and an opportunity for our economy. This legislative act will boost our mining sector, enhance our recycling and processing capacities, create local and good quality jobs, and ensure that our industry is up and ready for the digital and green transitions,” said Jo Brouns, Flemish minister for economy, innovation, work, social economy and agriculture.
