The EU Law on Essential Raw Materials: A New Era of Sustainable Sourcing

What is the EU Critical Raw Materials Act?

The European Union (EU) Critical Raw Materials  (CRMA) is a new regulation aimed at ensuring a safe and sustainable supply of critical raw materials (CRM) for the EU economy. CRMs are essential for many industries, including electronics, defense, and healthcare. CRMA defines 30 CRMs, including lithium, cobalt and rare earth metals.

Why is CRMA important?

The EU is heavily dependent on CRM imports. This dependence poses a risk to the EU's economic security and can lead to disruptions in the supply of essential goods and services. CRMA aims to address this risk by diversifying CRM supplies in the EU and promoting green supply practices.

What are the key provisions of the CRMA?

The CRMA includes a number of measures to strengthen the supply of CRM in the EU, including:

Creating a CRM list: CRMA identifies 30 CRMs that are considered important for the EU economy.

Establishing a risk assessment framework: CRMA establishes a framework for risk assessment for the supply of CRM in the EU.

Promoting sustainable sourcing practices: CRMA promotes sustainable sourcing practices throughout the CRM supply chain.

Promotion of investment in CRM exploration and production: CRMA encourages investment in CRM exploration and production in the EU.

What are the benefits of CRMA?

CRMA is expected to deliver a number of benefits, including:

More secure CRM supply: CRMA will help diversify EU CRM supply and reduce the risk of disruption.

More sustainable supply practices: CRMA will promote sustainable supply practices throughout the CRM supply chain.

Increased investment in CRM exploration and production: CRMA will encourage investment in CRM exploration and production in the EU.

What are the challenges facing CRMA?

CRMA faces a number of challenges, including:

High cost of CRM: CRM research, production and development are often expensive.

Environmental Impact of CRM Mining: CRM mining can have a significant impact on the environment.

CRM's complex global supply chain. The CRM supply chain is complex and includes a number of different actors.

The CRMA is an important piece of legislation that could change the EU CRM market. CRMA is expected to provide a number of benefits, but it also faces a number of challenges. Successful implementation of CRMA will require the cooperation of all stakeholders, including governments, industry and civil society.