The Critical Raw Materials Act is an initiative put forward by the European Commission to address the European Union’s (EU) dependence on imports of critical raw materials and strengthen the resilience of supply chains. The initiative consists of a Regulation and a Communication.
- The Regulation establishes a regulatory framework to support national capacity building and promote sustainability and circularity in critical raw material supply chains. It also sets clear policy priorities and sets benchmarks for diversifying EU supply by 2030.
- The Communication, for its part, proposes measures to promote the diversification of supply chains through new international partnerships based on mutual support. It seeks to maximise the contribution of EU trade agreements in complementarity with the Global Gateway strategy.
The Critical Raw Materials Act responds to the need to ensure a safe and sustainable supply of critical raw materials, especially in strategic sectors such as the net zero-emissions industry, the digital industry, the aerospace sector and the defence sector.
The EU relies heavily on imports of critical raw materials and seeks to mitigate the risks associated with those strategic dependencies to improve its economic resilience and meet climate and digital objectives.
The Regulation and Communication are based on scientific assessments and forward-looking reports on strategic technologies. The Commission strengthens the uptake of cutting-edge technologies in the field of critical raw materials and promotes research, innovation and capacity building in this field.
The Law also seeks to improve the circularity and sustainability of critical raw materials, protecting the environment and promoting sustainable development in third countries.
At international level, the EU is committed to diversifying imports of critical raw materials and strengthening strategic partnerships with trusted partners. Trade actions, the strengthening of the WTO and enforcement to combat unfair trading practices will be promoted.
In short, the EU Critical Raw Materials Act seeks to ensure access to a safe, diversified, affordable and sustainable supply of critical raw materials. It promotes diversification of supply chains, sets clear priorities and fosters international collaboration to strengthen economic resilience and protect the environment.