Critical Raw Materials Act

Critical Raw Materials Act

News: Recently, The European Parliament has approved the Critical Raw Materials Act.

Why?
• It aims to reduce the European Union’s (EU) reliance on China for critical minerals, essential for green technologies like solar panels, windmills, and electric car batteries.
• The EU currently depends on China for 99% of rare earth metals. The regulation sets the framework for ensuring a secure and sustainable supply of these raw materials, diversifying imports, and increasing processing capacity along the value chain

What are critical raw materials?
• Critical raw materials (CRMs) are raw materials of high economic importance for the EU, with a high risk of supply disruption due to their concentration of sources and lack of good, affordable substitutes.
• The CRM Act identifies a list of 30 critical raw materials, including lithium, cobalt, nickel, rare earths, and magnesium.