Critical Raw Materials Act: EU Selects Strategic Projects to Secure Raw Materials

The European Union has initiated Strategic Projects aimed at securing critical raw materials essential for various key industries. Under the Critical Raw Materials Act, which became effective in May 2024, the EU has identified a list of vital materials including lithium, cobalt, nickel, manganese, and graphite. These materials are fundamental for sectors such as renewable energy, digital technologies, aerospace, and defense, as well as for the production of batteries used in electric mobility and energy storage systems.

The primary objective of the Act is to decrease the EU’s reliance on external sources by creating a robust framework that emphasizes the extraction, processing, and recycling of these strategic raw materials. To achieve this, the EU has established specific benchmarks for its consumption of these materials:

• At least 10% of the EU’s annual consumption for extraction
• At least 40% of the EU’s annual consumption for processing
• At least 25% of the EU’s annual consumption for recycling
• No more than 65% of the Union’s annual consumption of each strategic raw material relies on a single third country supplier for any relevant stage of the value chain.

Strategic Projects eligible for selection must contribute to enhancing the EU’s supply security of these materials, demonstrate technical feasibility, ensure sustainable implementation, and provide cross-border benefits. From May 23 to August 22, 2024, the European Commission called for applications, which were subsequently evaluated by independent experts to ensure they met the criteria set forth by the Critical Raw Materials Act. Following consultations with the Critical Raw Materials Board, a preliminary list of projects was approved.

The selected Strategic Projects encompass 14 out of the 17 identified strategic raw materials, including bauxite/alumina/aluminum, boron, cobalt, copper, gallium, germanium, lithium, magnesium, manganese, graphite, nickel, platinum group metals, rare earth elements, and tungsten. However, bismuth, silicon metal, and titanium metal were excluded from this initial selection.

EU Commission selected 47 strategic projects 

These projects will benefit from accelerated permitting processes while adhering to all necessary environmental and social standards. Extraction projects will have a permit-granting period of up to 27 months, while processing and recycling projects will have up to 15 months. Additionally, projects will have streamlined communication through single points of contact within Member States.

Financial support for the Strategic Projects will be managed by a dedicated subgroup within the Critical Raw Materials Board, incorporating banks and financial institutions. Furthermore, projects can access funds from the European Development Fund and the Cohesion Fund. While primarily based in EU Member States, the Strategic Project designation is also available to projects outside the EU that meet the required criteria, with 46 applications submitted from third countries.

Detailed information about the selected projects and related resources is accessible through the European Commission’s official portals.

Source: European Commission, PRESS RELEASE