The Council has endorsed the Critical Raw Materials Act in a key move to fortify the foundation of European industries and strengthen the EU’s strategic autonomy.
The Council’s approval of the Critical Raw Materials Act (CRMA), the last step in the legislative procedure after having been previously adopted by the Parliament on 12 December 2023, introduces a comprehensive framework aimed at addressing the challenges posed by dependencies on critical raw materials. This legislation, approved on 18 March 2024, constitutes an important step toward ensuring a sustainable and resilient supply chain for critical raw materials deemed as indispensable for the green and digital transitions.
By setting clear deadlines for permit procedures, facilitating the development of strategic projects, and mandating supply-chain risk assessments, the CRMA aims to enhance Europe’s access to vital resources while promoting local production, recycling, and processing capacities. With the CRMA, Europe seeks to transform its vulnerabilities into opportunities for strategic autonomy and economic growth. Jo Brouns, Flemish Minister for Economy, Innovation, Work, Social Economy, and Agriculture, emphasised the Act’s potential to boost the mining sector, create quality jobs in Europe, and prepare industries for the digital and green transitions.
The Act identifies 34 critical and 17 strategic raw materials crucial for various industrial sectors. These materials are fundamental to sustaining the EU’s R&I ecosystem. Indeed, non-energy raw materials are linked to all industries across all supply chain stages. Conversely, certain raw materials are essential to driving the energy transition as they are required in the production of solar panels, electric vehicles, wind-turbines and other energy-efficient technologies. Additionally, innovation and technological development require access to an ever increasing number of raw materials that will determine a high-tech product’s small size, reduced weight and functionality.
To ensure the EU’s resilience, the CRMA sets ambitious benchmarks, including targets for local extraction, processing within the EU, and utilisation of recycled materials. Member States are tasked with establishing single points of contact to streamline administrative procedures and facilitate project development across the raw materials value chain. Moreover, large companies manufacturing strategic technologies will conduct risk assessments of their supply chains to identify vulnerabilities and ensure continuity of operations. These measures are essential for strengthening Europe’s strategic autonomy and reducing dependencies on external sources.
The CMRA introduces four key pillars: Firstly, by delineating a list of critical and strategic raw materials and setting ambitious benchmarks for domestic capacities, the CRMA establishes clear priorities for action, aiming to reduce dependencies and promote diversification of sourcing. Secondly, the Act emphasises the imperative of building European capacities across the raw materials value chain, necessitating the development of national exploration plans, streamlined permitting procedures, and improved access to finance. Thirdly, the CRMA focuses on improving resilience by enhancing monitoring capacity, building strategic stockpiles, and fostering sustainable investment and trade practices to mitigate supply chain disruptions. Lastly, investing in research, innovation, and skills development is integral to staying ahead in critical raw materials technology, with initiatives such as large-scale skills partnerships and the establishment of a Raw Materials Academy ensuring a skilled workforce equipped for the demands of supply chains. Together, these pillars underscore the CRMA’s comprehensive approach to promoting a sustainable and circular economy while strengthening Europe’s strategic position in the global raw materials landscape. This vision is reiterated in the newly published Horizon Europe strategic plan 2025-2027 (see SwissCore article) via the establishment of Raw Materials for the Green and Digital Transition which aims to achieve “technological leadership for Europe’s open strategic autonomy in raw materials, chemicals and innovative materials”.
The CRMA is also a key component of the EU’s Green Deal Industrial Plan, alongside other legislative initiatives such as the Net Zero Industry Act and the Reform of the electricity market design. By addressing the growing demand for critical raw materials, the Act supports Europe’s transition to a sustainable and circular economy while promoting innovation and resource efficiency. In addition to strengthening the EU’s domestic capacities, the Act emphasises international engagement to diversify supply chains and mitigate risks associated with geopolitical dependencies. Through strategic partnerships and trade actions, the EU aims to promote sustainable value chains while supporting the economic development of partner countries.
Furthermore, the establishment of a European Critical Raw Materials Board will facilitate coordination and implementation of actions related to exploration, monitoring, and strategic projects with third countries. This collaborative approach, involving Member States, the Commission, and relevant stakeholders, underscores the EU’s commitment to ensuring the availability and sustainability of critical raw materials. In sum, the adoption of the Critical Raw Materials Act represents a significant step in Europe’s journey toward a more resilient and sustainable future by prioritising strategic autonomy, promoting innovation, and strengthening international cooperation.