EU pushes ahead with Critical Raw Materials Act

EU pushes ahead with Critical Raw Materials Act

Five Second Summary

The EU's Critical Raw Materials Act aims to boost self-sufficiency, covering 34 materials vital for clean energy, with targets for extraction, processing, and recycling, and the EU parliament recently reached a deal on key terms of the Act.

The organisation

• EU Parliament

What's Happening

• The EU is finalising the Critical Raw Materials Act, which emphasises domestic mining and reducing reliance on individual countries for clean energy materials.

• Negotiators from the EU parliament and member states brokered the agreement, prioritising Europe's resilience and economic security.

• Focus now shifts to the Net Zero Industry Act - France is advocating for greater recognition of nuclear power in the EU's clean-tech sector.

Numbers + Facts

• Deal includes regulations for 34 critical raw materials, mainly metals, crucial for the clean-tech transition.

• Targets: 10% increase in EU contribution for extraction, 40% for processing, and a minimum of 25% for recycling of these materials.

• Measures to diversify imports, ensuring no more than 65% of EU's consumption of each strategic raw material comes from a single third country.

• A key term of the act aims to limit the permit-granting process to 27 months for extraction projects and 15 months for processing and recycling projects.

Looking Ahead

• The act once ratified, could help attract more capital to EU metals and clean energy companies

• The permitting process in particular could be particularly beneficial to companies, as mine permitting in the EU is known to move slowly

Read more: EU Makes Deal to Boost Domestic Supply of Key Raw Materials (Via Bloomberg)

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