The European Council has given its final nod to the Critical Raw Materials Act (CRMA), marking a significant step towards securing sustainable energy resources for the continent. This regulation establishes a robust framework aimed at guaranteeing a steady and environmentally responsible supply of critical raw materials crucial for the advancement of renewable energy technologies and other strategic industries.

Strategic autonomy ensured

The CRMA introduces stringent deadlines for permit procedures, enabling efficient approval of EU extraction projects. It empowers both the Commission and member states to designate projects as strategic, mandating comprehensive supply-chain risk assessments. Additionally, member states are required to develop national exploration plans to foster local resource development.

Enhanced access to resources   

Recognizing the importance of critical raw materials for the green and digital transitions, the CRMA identifies 34 critical and 17 strategic materials essential for various industries, including renewable energy, defense, and space. The regulation sets ambitious benchmarks, aiming for 10% local extraction, 40% processing within the EU, and 25% from recycled materials annually.

Streamlined project development

To expedite the development of strategic projects, member states will establish single points of contact across the critical raw materials value chain. Extraction projects will be granted permits within a maximum period of 27 months, while recycling and processing projects will receive permits within 15 months, with exceptions to ensure community engagement and environmental impact assessment.

Risk mitigation measures

Large companies involved in manufacturing strategic technologies, such as batteries, hydrogen, or renewable energy generators, will conduct thorough risk assessments of their supply chains to identify vulnerabilities, ensuring uninterrupted access to critical resources.

Next steps and implementation

With the Council's approval aligning with the European Parliament's position, the CRMA is set to be formally adopted. Upon signatures from the Presidents of the European Parliament and the Council, the regulation will be published in the Official Journal of the European Union and come into force twenty days later.

The Critical Raw Materials Act stands as a cornerstone in the EU's journey towards achieving energy security and strategic autonomy. Aligned with the Green Deal Industrial Plan, this legislative initiative underscores the commitment to sustainable development, job creation, and readiness for the digital and green transitions.

Background

The measures taken are essential because of the EU's growing demand for base metals, battery materials and rare earths, which will increase exponentially with the EU's transition to clean energy systems instead of fossil fuels.

The EU's green transition will need to increase local production of batteries, solar panels, permanent magnets and other clean technologies, which will require abundant access to a variety of raw materials to meet the corresponding demand. Moreover, these raw materials are critical for the EU in terms of climate, energy and environment, as they are irreplaceable in solar panels, wind turbines, electric vehicles and energy-efficient lighting.

The Critical Raw Materials Act, along with other key initiatives like the Net Zero Industry Act and the Reform of the electricity market design, forms part of the EU's comprehensive strategy outlined in the Green Deal Industrial Plan, spearheaded by Commissioner Thierry Breton. Having navigated through negotiations and reached a provisional agreement, the CRMA is poised to drive Europe's sustainable energy future forward.