Bloc needs to ‘up its game’ on securing raw materials, auditors find

The EU needs to “up its game” and improve its autonomy in critical raw materials, according a new report from the bloc’s auditors on Monday (2 February).

The three areas of improvement needed, according to the Luxembourg-based European Court of Auditors (ECA), are diversification of trade partners, more domestic production, and recycling, reusing and substituting.

With the green transition and digital tech, critical raw materials have become a top priority for the EU.

While several policies have been implemented, significant supply challenges and dependencies from third countries remain, according to ECA.

Critical raw materials are minerals and metals necessary for industry, technologies for smart phones, computers or batteries and renewable energy systems.

A list embedded in the 2024 Critical Raw Materials Act identifies 34 such materials for member states. Some 26 of those are necessary for renewable energy technologies and 17 count as strategic raw materials.

China, Turkey, Chile

Most of these materials are currently imported from third countries, putting the EU in a situation of severe dependency on countries such as China, Turkey and Chile.

“Without critical raw materials any talk of strategic autonomy and competitiveness stays hollow,” said Keit Pentus-Rosimannus, the auditor responsible for the report.

In the past five years, the EU has signed 14 strategic partnerships concerning raw materials. This includes the controversial Mercosur agreement with Argentina, Brazil, Paraguay, and Uruguay — countries rich in such minerals.

When it comes to domestic production, the auditors point out the mining sector in the EU has been underdeveloped and remains insufficient.

Processes to establish new mining projects need to be faster, said Pentus-Rosimannus.

Among the 26 critical materials required for the energy transition, recycling rates in the EU are extremely low, the auditors also note.

Seven such materials are recycled at rates only from one to five percent, and 10 have zero recycling.

According to the report, the commission accepted the areas of improvement and has already brought forward certain policies such as the recently-launched Resource EU Action Plan to address these issues.