The EU is sometimes extremely dependent on third countries such as China for the supply of critical raw materials such as lithium and silicon. A new set of rules is set to change this fundamentally by 2030.
The European Union should become more independent of third countries in the future when it comes to the supply of critical raw materials such as lithium and silicon. The European Parliament and member states agreed on a package of measures on Monday evening. In particular, it is intended to promote the refining, processing and recycling of critical raw materials in Europe in order to reduce dependence on countries such as China.
In the future, individual third countries should not supply more than 65 percent of the EU-wide requirement for a particularly important raw material. By 2030, this will apply to a list of 17 so-called strategic raw materials, including lithium, cobalt and silicon. According to the Council of Member States, a total of 34 raw materials should be classified as critical.
25 percent recycled in EU
Production within the EU should then cover at least ten percent of demand, and processing capacities should be at least 40 percent. A proportion of 25 percent of raw materials should be recycled in the EU.
“With targeted economic incentives, we create real planning security for private investors – for example through central contact points for companies and quick and simple approval procedures with clear deadlines for national authorities,” explained Parliament Vice President Nicola Beer. A framework for strategic raw materials partnerships with third countries will also make the EU an attractive partner in geopolitical competition.
“Warning shot to China”
The rapporteur for the Christian Democratic EPP group, Hildegard Bentele (CDU), also called the regulation a “warning shot to China” because of its diversification goals. The country is currently still considered a very important supplier to the EU.
When presenting its draft regulation in March, the EU Commission stated that critical raw materials were indispensable for a wide range of technologies for climate protection, but also for digital, space and defense. At the same time, however, the supply of the substances is accompanied by increasing geopolitical, ecological and social risks.
The EU is dependent on several critical raw materials and often over 90 percent of the EU’s needs are covered by a single third country. As an example, the EU Commission cited rare earths, which are used to build permanent magnets for the motors of wind turbines. According to the authorities, 100 percent of these were refined in China until recently.
Critical raw material lithium
Another example of a critical raw material is lithium, which is used in batteries for electric vehicles and to store energy. According to the EU, demand for the light metal will probably increase twelvefold by 2030. Silicon, which is needed for the production of microchips, is also extremely relevant.
The deal now needs to be confirmed by the Council of Member States and the plenary session of the European Parliament. However, this is considered a formality.