Released April 04, 2023 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has introduced its Critical Minerals Act in an effort to secure a more sustainable supply of the minerals essential to its climate, automotive, digital, aerospace, and defense sectors.
Demand for key raw materials is projected to increase dramatically in the coming years, and Europe is heavily reliant on imports, often from "quasi-monopolistic third country" suppliers, the EC noted. The European Union (EU) is overly dependent on single sources, with more than 90% of its supply of certain minerals coming from a single third country. For instance, 63% of the world's cobalt, used in batteries, is extracted in the Democratic Republic of Congo, while 60% is refined in China. Turkey, a non-EU nation, provides 98% of the EU's supply of borate--used in glass, fertilizers and adhesives. In addition:
The Commission said that the region needs to mitigate the risks for supply chains related to such strategic dependencies to enhance its economic resilience, as highlighted by shortages in the aftermath of the COVID-19 and the energy crisis following Russia's invasion of Ukraine. It believes that failing to do so will "put at risk" the EU's efforts to meet its climate and digital objectives.
The act, in addition to having an updated list of critical raw materials, also identifies a list of strategic raw materials (SRMs), sets out clear benchmarks for domestic capacities along the supply chain and aims to diversify EU supply by 2030. This includes that not more than 65% of the Union's annual consumption of each strategic raw material at any relevant stage of processing comes from a single third country. In addition, 10% of strategic raw materials will need to be extracted within the EU--up from the current figure of 3%.
The EU will aim to get 15% of its raw materials from recycling while at least 40% of the processing and refining of materials will also need to be carried out in the EU--up from less than 20% now. The act also aims to boost investment in mining projects by "reducing the administrative burden and simplify permitting procedures for critical raw materials projects" Selected Strategic Projects will benefit from support for access to finance and shorter permitting timeframes (24 months for extraction permits and 12 months for processing and recycling permits). EU Member States will also have to develop national programmes for exploring geological resources. Industrial Info reported recently that Europe's largest deposit of rare earth minerals had been discovered by Sweden's state-owned mining giant LKAB (Lulea) in the arctic region of Kiruna, Sweden.
The company said that it has "identified significant deposits of rare earth elements in the Kiruna region, metals which are essential for, among other applications, the manufacture of electric vehicles and wind turbines." For additional information, see January 23, 2023, article - Europe Discovers Largest Rare Earth Minerals Deposit.
"Critical Raw Materials are fundamental for our competitiveness, centered on our goal to be leaders in the green industries of the future," said Valdis Dombrovskis, executive vice president and Commissioner for Trade. "We will scale and speed up our own capacities, and build stronger global relationships based on trust, openness and mutual gain. Our recently concluded trade agreements with Chile, and the future agreements with Australia or Indonesia will help support sustainable and resilient supply chains. We will create a global Critical Raw Materials Club with reliable partners that are keen to develop their own critical raw materials industries. Closer and more diverse trade ties are the way to reduce our dependencies and the vulnerabilities that result from them."
Euromines, Europe's leading association for the metals and minerals mining industry, welcomed the Act: "Today the mining industry in Europe has by far the lowest climate footprint and the lowest environmental impact," said Jan Moström, Euromines' president and chief executive officer of LKAB. "We have the opportunity to foster a dynamic mining industry leading the sustainability transition. Nowhere else mining is happening at such a high level of environmental protection as in Europe. The CRM Act recognises mining as the first step in the green tech value chains and addresses challenges coming with the long-term commitment of a mining operation."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Demand for key raw materials is projected to increase dramatically in the coming years, and Europe is heavily reliant on imports, often from "quasi-monopolistic third country" suppliers, the EC noted. The European Union (EU) is overly dependent on single sources, with more than 90% of its supply of certain minerals coming from a single third country. For instance, 63% of the world's cobalt, used in batteries, is extracted in the Democratic Republic of Congo, while 60% is refined in China. Turkey, a non-EU nation, provides 98% of the EU's supply of borate--used in glass, fertilizers and adhesives. In addition:
- 97% of EU's magnesium supply is sourced from China
- 100% of the rare earths used for permanent magnets globally are refined in China
- South Africa provides 71% of the EU's needs for platinum group metals
The Commission said that the region needs to mitigate the risks for supply chains related to such strategic dependencies to enhance its economic resilience, as highlighted by shortages in the aftermath of the COVID-19 and the energy crisis following Russia's invasion of Ukraine. It believes that failing to do so will "put at risk" the EU's efforts to meet its climate and digital objectives.
The act, in addition to having an updated list of critical raw materials, also identifies a list of strategic raw materials (SRMs), sets out clear benchmarks for domestic capacities along the supply chain and aims to diversify EU supply by 2030. This includes that not more than 65% of the Union's annual consumption of each strategic raw material at any relevant stage of processing comes from a single third country. In addition, 10% of strategic raw materials will need to be extracted within the EU--up from the current figure of 3%.
The EU will aim to get 15% of its raw materials from recycling while at least 40% of the processing and refining of materials will also need to be carried out in the EU--up from less than 20% now. The act also aims to boost investment in mining projects by "reducing the administrative burden and simplify permitting procedures for critical raw materials projects" Selected Strategic Projects will benefit from support for access to finance and shorter permitting timeframes (24 months for extraction permits and 12 months for processing and recycling permits). EU Member States will also have to develop national programmes for exploring geological resources. Industrial Info reported recently that Europe's largest deposit of rare earth minerals had been discovered by Sweden's state-owned mining giant LKAB (Lulea) in the arctic region of Kiruna, Sweden.
The company said that it has "identified significant deposits of rare earth elements in the Kiruna region, metals which are essential for, among other applications, the manufacture of electric vehicles and wind turbines." For additional information, see January 23, 2023, article - Europe Discovers Largest Rare Earth Minerals Deposit.
"Critical Raw Materials are fundamental for our competitiveness, centered on our goal to be leaders in the green industries of the future," said Valdis Dombrovskis, executive vice president and Commissioner for Trade. "We will scale and speed up our own capacities, and build stronger global relationships based on trust, openness and mutual gain. Our recently concluded trade agreements with Chile, and the future agreements with Australia or Indonesia will help support sustainable and resilient supply chains. We will create a global Critical Raw Materials Club with reliable partners that are keen to develop their own critical raw materials industries. Closer and more diverse trade ties are the way to reduce our dependencies and the vulnerabilities that result from them."
Euromines, Europe's leading association for the metals and minerals mining industry, welcomed the Act: "Today the mining industry in Europe has by far the lowest climate footprint and the lowest environmental impact," said Jan Moström, Euromines' president and chief executive officer of LKAB. "We have the opportunity to foster a dynamic mining industry leading the sustainability transition. Nowhere else mining is happening at such a high level of environmental protection as in Europe. The CRM Act recognises mining as the first step in the green tech value chains and addresses challenges coming with the long-term commitment of a mining operation."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
