The European Commission introduces the Critical Raw Materials Act to decrease supply chain dependencies
The European Commission presented actions to secure the EU’s critical raw materials supply chains and reduce their reliance on third country suppliers. The proposed Critical Raw Materials Act aims to strengthen the EU’s domestic capacities and supply chains for these materials, while the Communication on critical raw materials focuses on diversifying supply chains through partnerships and trade agreements.
On 16 March 2023, the European Commission presented a list of actions aimed at ensuring the resilience and security of the EU critical raw materials supply chains, reducing their reliance on imports from third country suppliers. The measure joins the efforts of the EU to meet its climate and digital strategies, given the indispensability of these materials for these sectors.
The proposal includes a Regulation and Communication on critical raw materials. The first, the Critical Raw Materials Act, aims to establish a regulatory framework to build domestic capacities and strengthen the EU’s critical raw material supply chains, improving their sustainability and circularity. The latter focuses on diversifying supply chains through new partnerships and maximizing the EU trade agreements within the framework of its Global Gateway Strategy.
Actions introduced by the new act also include setting clear targets for diversification and self-sufficiency along the EU’s critical raw material supply chain, simplifying procedures for projects, monitoring supply chain risks, investing in research, innovation and skills, and mitigating adverse events effects by implementing strategies for greater sustainability and circularity.
As the next steps towards its adoption and implementation, the proposed Regulation will be discussed and agreed upon by the European Parliament and the Council of the European Union.