European Critical Raw Materials Act (2023)

Questions and Answers

What is the primary aim of the European Critical Raw Materials Act?

To enhance international raw material trade regulations

To secure and sustainably supply critical raw materials for green and digital transitions (correct)

To promote the use of alternative energy sources exclusively

To reduce overall consumption of raw materials by 2030

By 2030, what percentage of the EU's extraction needs does it aim to meet domestically?

25%

10% (correct)

50%

40%

Which raw material is NOT mentioned in the European Critical Raw Materials Act?

Lithium

Cobalt

Titanium

Copper (correct)

What is one of the key objectives for improving the EU's resilience in raw material supply chains?

Building strategic stockpiles Signup and view all the answers

What percentage of processing needs does the EU aim to meet domestically by 2030?

40% Signup and view all the answers

Which country is NOT mentioned as a major supplier of raw materials for the EU?

United States Signup and view all the answers

Which action is NOT part of the Act's objective for promoting sustainability?

Increasing raw material exports Signup and view all the answers

How does the European Critical Raw Materials Act plan to enhance the entire value chain of raw materials?

Through improved exploration and access to finance Signup and view all the answers

What role does investment in research and skills play according to the Act?

It emphasizes supporting breakthrough technologies and educational initiatives Signup and view all the answers

What is the maximum percentage of any material’s supply that can come from a single third country as per the Act's goals?

65% Signup and view all the answers

Study Notes

European Critical Raw Materials Act (2023)

Enacted on September 4, 2023, to secure and sustainably supply critical raw materials for EU climate and digital transitions.
Critical raw materials include lithium, cobalt, nickel, gallium, boron, titanium, and tungsten.
Aims to reduce dependency on single-country suppliers and enhance raw material supply chains within the EU.

Key Objectives

Strengthening Domestic Supply Chains
- Target by 2030: Meet 10% of extraction needs, 40% of processing needs, and 25% of recycling needs domestically.
- Restricts supply reliance by capping any material’s supply from a single third country at 65%.
Building European Capacities
- Focus on improvement across the entire value chain, from exploration to recycling.
- Seeks better exploration processes, streamlined permitting, and enhanced access to finance.
Improving Resilience
- Enhances ability to manage supply chain disruptions through increased monitoring and strategic stockpiling.
- Promotes sustainable investments to secure long-term supply stability.
Investing in Research and Skills
- Supports breakthrough technologies relevant to critical raw materials sector.
- Establishes educational initiatives aimed at developing a skilled workforce.
Promoting Sustainability and Circularity
- Encourages recycling efforts and the establishment of a secondary market for raw materials.
- Improves labor rights and environmental protections through certification programs.

International Engagement

Emphasizes the importance of diversification of import sources, currently heavily reliant on China, the Democratic Republic of Congo, and Türkiye.
Plans to create global partnerships and trade actions to enhance supply chain robustness.
Development of a Critical Raw Materials Club to strengthen international collaboration and promote sustainable development.

Description

The European Critical Raw Materials Act, enacted on September 4, 2023, highlights the EU's commitment to securing sustainable supplies of essential raw materials. This legislation supports the EU's climate and digital initiatives by focusing on materials critical to these transitions, including lithium, cobalt, and nickel.