DPP’s synergistic relationship with The Critical Raw Materials Act
Another key piece of legislation enacted by the EU and part of the EGD initiative is the Critical Materials Act (CRMA) regulation adopted May 23, 2024. Designed to secure a sustainable and reliable supply of critical raw materials for European industries, the new act’s goals are to strengthen the production, processing, and recycling of strategic raw materials with the EU.9
The CRMA aims to bolster the EU’s strategic autonomy by reducing reliance on external suppliers for CRMs. Essential to produce batteries, renewable energy technologies, and various high-tech applications, these materials include lithium, cobalt, and nickel.
To meet these objectives, the CRMA has set targets for strategic raw materials for 2030 that include:
- 10% of the EU’s annual consumption for extraction to be sourced domestically.
- 40% of the EU’s annual consumption for processing to occur within the EU.
- 25% of the EU’s annual consumption to come from recycling.
Additionally, the Act mandates that no more than 65% of any strategic raw material should be sourced from a single third country, consequently reducing the risk of supply chain disruptions.10
The CRMA is expected to work in parallel with the passport to provide detailed information about the origin, composition, and lifecycle of critical raw materials within a product. This will enable better tracking and compliance with the Act’s requirements for responsible sourcing and recycling of these materials.