The European Union's Critical Raw Materials Act (CRMA), aimed at reducing dependence on third countries for essential raw materials such as lithium (Li) and magnesium (Mg), has officially come into effect.
The CRMA sets a goal of reducing reliance on strategic raw materials from third countries to less than 65% of total internal consumption by 2030. To achieve this, it includes regulations to strengthen manufacturing capabilities within the region and diversify supply sources, with the legislative intent being interpreted as a move to reduce dependence on Chinese raw materials.
The act targets increasing the domestic share of mining to 10%, processing to 40%, and recycling to 15%. Additionally, it aims to shorten the approval process for new mining projects within the EU to 27 months and for processing and recycling projects to 15 months, down from several years.
A total of 34 critical raw materials essential for carbon-neutral industries have been designated, with 17 of them, including lithium, classified as strategic raw materials. These strategic materials will undergo periodic supply chain risk assessments.
The European Commission stated, "Europe now has a framework to increase domestic manufacturing capacity and strengthen the sustainability and circularity of critical raw material supply chains," adding that "through the CRMA, the EU will bolster internal supply chains and reduce dependency on a single supplier country."
Coinciding with the CRMA's enforcement, the first meeting of the European Critical Raw Materials Board was held. This board, established under the CRMA, is a high-level consultative body created to discuss strategic project selection and the implementation of the law between the European Commission (EC) and EU member states.
The CRMA primarily sets target levels to be achieved at the EU level and does not include specific discriminatory clauses against foreign products. Therefore, its immediate impact on individual companies is expected to be limited. However, as detailed implementation plans are developed following the law's enforcement, there is speculation that administrative burdens on companies may increase or that regulatory measures could follow.
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