Europe identifies 47 critical raw material projects
The European Commission has identified 47 projects to produce critical raw materials, from lithium, nickel, cobalt and graphite for batteries to gallium and germanium for chips as well as rare earth elements for magnets and motors.
The 47 Strategic Projects were selected out of 170 applications and cover 13 countries and will need €22.5 billion of investment.
These cover 14 of the 17 strategic raw materials listed in the Critical Raw Materials Act with 25 projects for extraction, 24 for processing, 10 for recycling (including one from collapsed battery maker Northvolt) and two for substituting raw materials with other options.
“At the very start of our most strategic supply chains, are raw materials. They are also indispensable to the decarbonisation of our continent,” said Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy.
“But Europe currently depends on third countries for many of the raw materials it needs the most. We must increase our own production, diversify our external supply, and make stockpiles. Today, we have identified 47 new strategic projects that, for the first time, will help us secure our own domestic supply of raw materials. This is a landmark moment for European sovereignty as an industrial powerhouse.
This is a key milestone in the implementation of the Critical Raw Material Act (CRMA), which aims to ensure European extraction, processing and recycling of strategic raw materials meet 10%, 40% and 25% of EU’s demand by 2030, respectively. Projects for the battery supply chain include:
- Lithium (22 projects)
- Nickel (12 projects)
- Cobalt (10 projects)
- Manganese (7 projects)
- Graphite (11 projects)
Other strategic projects involving magnesium (1) and tungsten (3 projects) will contribute to the resilience of the EU’s defence industry.
The critical raw materials projects will benefit from streamlined permitting provisions to ensure predictability for project promoters while safeguarding environmental, social and governance standards. In line with the CRMA, the permit-granting process will not exceed 27 months for extraction projects and 15 months for other projects. Currently, permitting processes can last from five to 10 years.
One of the lithium projects is Vulcan Energy in Germany.
“Achieving Strategic Project status from the European Commission validates the importance of our integrated lithium and renewable energy project to European industry, and builds momentum for the delivery of Europe’s first fully domestic and sustainable lithium value chain,” said Cris Moreno, Managing Director & CEO at Vulcan.
“The CRMA plays a pivotal role in driving change and highlighting the importance of sustainable raw material extraction in Europe. With access to Europe’s largest lithium resource, our Project is strategically positioned to support the CRMA benchmarks and diversify the EU’s lithium supply away from third countries.”
The Commission will announce a new call for Strategic Project applications, currently planned for end of summer.
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