WHAT IS THE AIM OF THE REGULATION?
Regulation (EU) 2024/1252 aims to ensure the European Union’s (EU) access to a secure, resilient and sustainable supply of critical raw materials and to promote efficiency and circularity throughout the value chain.
To achieve this, the regulation contains measures to:
- reduce the risk of disruption to the supply of critical raw materials by supporting strategic projects, diversifying imports and incentivising technological progress and resource efficiency;
- improve the EU’s ability to monitor and respond to supply risks;
- ensure critical raw materials and products can move freely across the EU, while meeting high environmental, social and governance standards.
KEY POINTS
Strategic raw materials
- Annex I contains a list of 17 raw materials considered to be strategic in light of their importance for green and digital technologies, and for defence and aerospace applications.
- The European Commission:
- may update the list to include more raw materials in light of their strategic importance for green and digital technologies and for defence and aerospace applications and in light of the expected global demand and production difficulties (Annex I, Section 2 sets out the methodology), or when asked to do so by the European Critical Raw Materials Board;
- must review the list by 24 May 2027 and every three years thereafter.
Critical raw materials
- Annex II contains a list of 34 raw materials considered to be critical in light of their importance for the EU’s economy and their relatively high supply risk.
- The Commission:
- may update the list to reflect other materials’ supply risk or economic importance (Annex II, Section 2 sets out the methodology);
- must review the list by 24 May 2027 and every three years thereafter.
Benchmarks
The Commission and the EU Member States must:
- strengthen the different value chain stages so that, by 2030, the EU’s capacity for each raw material approaches or reaches the following EU-level benchmarks:
- extraction capacity of ores, minerals or concentrates produces at least 10 % of annual EU consumption of strategic raw materials,
- processing capacity, including all intermediate steps, provides at least 40 % of annual EU consumption of strategic raw materials,
- recycling capacity, including all intermediate steps, accounts for at least 25 % of annual EU consumption of strategic raw materials;
- diversify imports of strategic raw materials so that no single non-EU country accounts for more than 65 % of a particular commodity.
Strategic projects
The Commission, following a call for applications, recognises projects as strategic if they:
- make a meaningful contribution to the security of supply of strategic raw materials;
- become technically feasible with sufficient production volume within a reasonable time frame;
- are environmentally and socially sustainable;
- produce cross-border benefits within the EU or add local value to the non-EU country they operate in, for developing economies and emerging markets.
Projects that are labelled as strategic will benefit from the support of the Commission and the relevant national governments.
The permit-granting process for strategic projects should not exceed 27 months for extraction projects and 15 months for processing or recycling projects. These time limits do not take into account the preparation of an environmental impact assessment report by the developer and may, in exceptional cases, be extended due to the nature, complexity, location or size of the strategic project.
Strategic projects will be considered to be in the public interest. In accordance with the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters, additional time may be allocated for the meaningful involvement and active participation of the communities affected by the strategic project.
Strategic projects will benefit from the advice and support of the European Critical Raw Materials Board’s financing subgroup on the completion of these projects’ financing.
The Commission will set up a system to facilitate the conclusion of offtake agreements between the strategic projects and other relevant economic operators.
Member States must undertake other activities to support the developments of the critical raw materials value chain, notably to:
- designate a single point of contact to manage the permit-granting process for critical raw material projects;
- ensure planning authorities include, where appropriate, provision for such projects;
- draw up national exploration programmes targeted at critical raw materials and carrier minerals by 24 May 2025, updating them at least every five years.
Risk monitoring and mitigation
- The Commission, in collaboration with Member States’ authorities, monitors supply risks related to critical raw materials by monitoring parameters such as trade flows or price volatility and by conducting stress tests of relevant supply chains.
- In addition, the Commission cooperates with Member States to coordinate the EU’s strategic stocks of strategic raw materials to mitigate potential supply disruptions.
- To ensure preparedness, identified large companies using strategic raw materials to manufacture a range of products such as batteries for energy storage, robotics, drones and satellites will carry out a risk assessment every three years of their supply chain of strategic raw materials. The Commission will also operate a system to try to match the demand and supply of strategic raw materials.
Sustainability and circularity
- Member States will adopt national programmes on the circularity of critical raw materials, notably to incentivise technological progress, resource efficiency and circularity.
- Operators are required to draw up waste management plans and assess the potential recovery of critical raw materials from their stored extractive waste.
- Manufacturers must clearly indicate whether items such as cars, washing machines and microwaves contain one or more permanent magnets and provide information on the recycling potential of their critical raw materials.
- The Commission may recognise certification schemes on the sustainability of critical raw materials and establish rules to calculate and verify the environmental footprint of different critical raw materials.
The regulation establishes a European Critical Raw Materials Board with thematic subgroups to advise the Commission and to oversee the implementation of the legislation.
FROM WHEN DOES THE REGULATION APPLY?
The regulation has applied since 23 May 2024.
BACKGROUND
Critical raw materials are crucial for Europe’s economy and for a wide set of technologies for strategic sectors, such as renewable energy, digital, aerospace and defence. With growing international demand for certain materials and supply often heavily concentrated in specific areas – China accounts for 100 % of EU heavy rare earth needs and Turkey for 99 % of boron supplies – reliable access is essential and highly competitive.
The legislation, known as the European Critical Raw Materials Act, is a comprehensive response to these challenges.
For further information, see:
MAIN DOCUMENT
Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020 (OJ L, 2024/1252, 3.5.2024).
See consoliadted version.
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Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing Directive 2006/66/EC (OJ L 191, 28.7.2023, pp. 1–117).
Successive amendments to Regulation (EU) 2023/1542 have been incorporated into the original text. This consolidated version is of documentary value only.
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See consolidated version.
Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC) No 595/2009 and repealing Directive 2007/46/EC (OJ L 151, 14.6.2018, pp. 1–218).
See consolidated version.
Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, pp. 1–38).
See consolidated version.
Consolidated version of the Treaty on the Functioning of the European Union – Part Five – The Union’s external action – Title IV – Restrictive measures – Article 215 (ex Article 301 TEC) (OJ C 202, 7.6.2016, p. 144).
Directive 2014/89/EU of the European Parliament and of the Council of 23 July 2014 establishing a framework for maritime spatial planning (OJ L 257, 28.8.2014, pp. 135–145).
Regulation (EU) No 168/2013 of the European Parliament and of the Council of 15 January 2013 on the approval and market surveillance of two- or three-wheel vehicles and quadricycles (OJ L 60, 2.3.2013, pp. 52–128).
See consolidated version.
Directive 2012/19/EU of the European Parliament and of the Council of 4 July 2012 on waste electrical and electronic equipment (WEEE) (OJ L 197, 24.7.2012, pp. 38–71).
See consolidated version.
Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, pp. 1–21).
See consolidated version.
Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (OJ L 334, 17.12.2010, pp. 17–119).
See consolidated version.
Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products (OJ L 285, 31.10.2009, pp. 10–35).
See consolidated version.
Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds (OJ L 20, 26.1.2010, pp. 7–25).
See consolidated version.
Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (OJ L 312, 22.11.2008, pp. 3–30).
See consolidated version.
Decision No 768/2008/EC of the European Parliament and of the Council of 9 July 2008 on a common framework for the marketing of products, and repealing Council Decision 93/465/EEC (OJ L 218, 13.8.2008, pp. 82–128).
Directive 2006/21/EC of the European Parliament and of the Council of 15 March 2006 on the management of waste from extractive industries and amending Directive 2004/35/EC – Statement by the European Parliament, the Council and the Commission (OJ L 102, 11.4.2006, pp. 15–34).
See consolidated version.
Regulation (EC) No 1367/2006 of the European Parliament and of the Council of 6 September 2006 on the application of the provisions of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters to Community institutions and bodies (OJ L 264, 25.9.2006, pp. 13–19).
See consolidated version.
Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) (OJ L 24, 29.1.2004, pp. 1–22).
Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L 197, 21.7.2001, pp. 30–37).
Directive 2000/53/EC of the European Parliament and of the Council of 18 September 2000 on end-of life vehicles – Commission Statements (OJ L 269, 21.10.2000, pp. 34–43).
See consolidated version.
Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, pp. 1–73).
See consolidated version.
Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (OJ L 206, 22.7.1992, pp. 7–50).
See consolidated version.
