The EU wants to ensure a reliable and sustainable supply of critical raw materials such as lithium with a new set of rules. Representatives of the governments of the Member States and the European Parliament have agreed on a draft text for a corresponding regulation. In particular, it aims to promote the refinement, processing and recycling of critical raw materials in Europe.
“With targeted economic incentives, we create real planning certainty for private investors – for example through central contact points for companies and fast and simple approval procedures with clear deadlines for national authorities,” explains Vice-President of Parliament Nicola Beer (FDP). A framework for strategic raw materials partnerships with third countries will also make the EU an attractive partner in geopolitical competition.
“Warning shot for China”
The ÖVP delegation leader in the EU Parliament, Angelika Winzig, described the law as a “major step towards a more independent European industry and economy fit for green and digital change”. The rapporteur of the Christian Democratic EPP group, Hildegard Bentele (CDU), called the regulation a “warning shot for China”. She pointed out, among other things, that the raw materials regulation would also prescribe the diversification of supply.
When presenting its draft regulation last March, the European Commission stated that crucial raw materials are indispensable for a wide range of climate protection technologies, as well as 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 crucial raw materials and often more than 90 percent of the EU’s needs are met by a single third country.
As an example, the European Commission cited rare earth metals such as neodymium, which are used to build permanent magnets for wind turbine engines. According to authorities, until recently 100 percent of this was refined in China. 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 is expected to increase twelvefold by 2030. Silicon, necessary for the production of microchips, is also extremely relevant.
The agreement still needs to be confirmed by the Council of the Member States and the plenary of the European Parliament. However, this is considered a formality.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
