The Critical Raw Materials Law aims to make the EU more competitive and sovereign. Its objective is to reduce bureaucracy, promote innovation throughout the entire value chain, support SMEs and promote research and development of alternative materials and more environmentally friendly mining and production methods.
The legislation will establish economic incentives and a more stable and secure business framework for the deployment of mining and recycling projects, with faster and simpler authorization procedures.
Strategic partnerships
During the negotiations, MEPs highlighted the importance of securing strategic partnerships between the EU and third countries in critical raw materials, in order to diversify EU supplies, with benefits for all parties. They secured measures to pave the way for long-term partnerships with knowledge and technology transfer, training and upskilling for new jobs with better working conditions and income, as well as extraction and processing with the best ecological standards in partner countries.
MEPs also pushed for more attention to be paid to research and innovation in substitute materials and production processes that could replace raw materials in strategic technologies. They achieved the establishment of circularity objectives to encourage the extraction of more strategic raw materials from waste products. MEPs also insist on the need to reduce bureaucracy for companies, in particular small and medium-sized enterprises (SMEs).
Appointment
Senior MEP Nicola Cerveza (Renew, DE) said: โThe agreement is an industrial policy plan for a secure and sustainable supply of raw materials in Europe. With targeted financial incentives, we are creating project planning security for private investors, through single points of contact for companies and quick and simple authorization procedures with clear deadlines for national authorities. โThis will boost mining, processing and recycling in Europe.โ
"At the same time, we are stimulating research and innovation along the entire value chain. A framework for strategic raw materials partnerships with third countries on equal terms will also make the EU an attractive partner in competition." geopolitical, with real benefits for both parties. and strong protection of local communities and nature. With a clear signature from the EU Parliament, the course has been set towards the open, economic and geopolitical sovereignty of Europe," he added.
Next steps
The informal agreement now needs to be approved by both Parliament and the Council to become law. It will be put to a vote in the Industry, Research and Energy committee on December 7.
Background
Electric cars, solar panels and smartphones contain critical raw materials. For now, the EU depends on certain raw materials. Critical raw materials are essential for the EU's green and digital transitions, and securing their supply is crucial for the economic resilience, technological leadership and strategic autonomy of the European Union. Since the Russian war against Ukraine and an increasingly aggressive Chinese trade and industrial policy, cobalt, lithium and other raw materials have also become a geopolitical factor.
With the global shift towards renewable energy and the digitalization of economies and societies, demand for these strategic raw materials will increase rapidly in the coming decades.
