Strengthening Europe’s Strategic Raw Material Capacities

The European Commission has unveiled its first-ever list of 47 Strategic Projects under the Critical Raw Materials Act (CRMA). These projects are set to bolster Europe’s domestic capacity in extracting, processing, recycling, and substituting strategic raw materials, helping secure the EU’s supply chains and advancing the green and digital transitions.

CRMA aims

The CRMA targets 10% extraction, 40% processing, and 25% recycling of strategic raw materials to meet EU demand by 2030. The newly selected Strategic Projects will play a pivotal role in achieving these goals while supporting critical sectors like defence and aerospace.

Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy has stated: ”At the very start of our most strategic supply chains, are raw materials. They are also indispensable to the decarbonisation of our continent. But Europe currently depends on third countries for many of the raw materials it needs the most. We must increase our own production, diversify our external supply, and make stockpiles. Today, we have identified 47 new strategic projects that, for the first time, will help us secure our own domestic supply of raw materials. This is a landmark moment for European sovereignty as an industrial powerhouse.”

47 projects over 13 member states

The press release informs that 47 projects span 13 Member States: Belgium, France, Germany, Italy, and more where 25 projects are related to extraction, 24 are processing projects, 10 are recycling projects and 2 are substitution projects. These initiatives focus on 14 of the 17 strategic raw materials listed under the CRMA, including lithium (22 projects), nickel (12), cobalt (10), and more. This is a significant step toward ensuring the EU’s leadership in the battery raw material value chain and beyond.

Picture source and credits: Official European Union webpage.

With an estimated €22.5 billion in capital investment, these projects will benefit from: streamlined permitting (27 months for extraction, 15 months for other projects), access to coordinated support from the Commission, Member States, and financial institutions and predictable processes while adhering to environmental, social, and governance (ESG) standards.

The Commission will soon issue a new call for Strategic Project applications, expected by the end of summer, and decisions regarding third-country projects are forthcoming.