Overview of the legal framework of the Green Deal

The Critical Raw Material Act

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The Critical Raw Material Act

The Critical Raw Material Act was published on 3 May 2024 and aims to ensure that the EU can supply its industry with critical raw materials on a constant and sustainable basis in order to reduce dependence on individual countries.
This law is intended to strengthen the EU's capacities along the entire value chain, making the EU less vulnerable and thus more independent. It also aims to improve the circularity and efficient use of critical raw materials by creating value chains for recycled critical raw materials. In addition, this law will enable the monitoring of supply chains for critical raw materials, as well as the exchange of information and future coordination on stocks of strategic raw materials between member states and large companies.

Objectives:

Strengthening European supply chains Partnerships with non-EU countries

Raw materials and international relations


63% of the cobalt used for batteries worldwide comes from the Republic of Congo

97% of the magnesium required in the EU comes from China

100% of the rare earths used in permanent magnets are refined in China
Schedule:
By 2030
At least 10% of the demand for strategic raw materials is to be subsidised in the EU.
By 2030
At least 40% is to be further processed in the EU.
By 2030
At least 25% should come from the European circular economy.
By 2030
the EU should not be more than 65% dependent on any third country.



 	
The pillars of the law:

    

        

                

                    

                        Definition of clear priorities:
                        The law identifies both critical and strategic raw materials that are essential for green and digital technologies as well as for the space and defence industries. The EU should not source more than 65% of its annual demand for a strategic raw material at any relevant stage of processing from a single non-EU country. Benchmarks for domestic capacities for 2030 are: 10 % of the EU's annual extraction needs, 40 % for processing and 25 % for recycling.
                    

                

            

                

                    

                        Building European capacities:
                        Strengthening the entire value chain (extraction, refining, processing, recycling). On-site exploration, simpler and predictable authorisation procedures and easier access to funding are essential for this.
                    

                

            

                

                    

                        Increased resilience:
                        The EU will increase its monitoring capacity through stress tests, ensure the coordinated development of strategic stocks and promote sustainable investment and trade.
                    

                

            

                

                    

                        Investment in research, innovation and expertise:
                        Pioneering technologies in the field of critical raw materials are to be driven forward.
                    

                

            

                

                    

                        Promoting a sustainable and circular raw materials economy:
                        The focus is on measures to recover critical raw materials from waste disposal facilities as well as labour rights, human rights, environmental protection and the introduction of certification systems to ensure sustainability.
                    

                

            

    








Further information:

[EUR-Lex] The Critical Raw Material Act
Critical Raw Material (bmf.gv.at)