The EC wants member states to start
considering the domestic sourcing of critical raw materials. Pictured here is
an example of such an endeavour at Sienna Resources’ optioned Kuusamo
Ni-Cu-Co-PGE project in Finland. (Image courtesy of EMX Royalty).
Speaking at the European Raw Materials
Alliance Summit, the European Commissioner for Internal Market, Thierry Breton,
rang the alarm bell regarding the EU’s dependence on third countries for 99
products – mostly raw materials – needed for the energy-intensive industries ecosystem.
Breton made a case point regarding rare
earths supply, 98% of which are delivered to Europe from China, either raw or
refined.
“It
is not an enviable position to be in, but we are not alone: the US, Japan, the
UK, Canada, Australia, India and others are rushing to address this
vulnerability as well,” the commissioner said. “I believe we are in a similar
situation with rare earths and permanent magnets as we were a few years ago
with batteries and lithium: Total dependence on China, very limited EU
production, no European regulation to encourage ethical sourcing of rare
earths, create demand for recycled materials or give a competitive advantage to
European manufacturers through carbon footprint requirements, and downstream
industries which benefit from the current situation in terms of cost/benefit
ratio.”
Given this context, Breton said that it
is important for member states and regions to follow the directions established
in the EU Action Plan on Critical Raw Materials and work together on
identifying critical raw material and rare earths mining, processing and waste
valorization projects that can be operational by 2025.
MEMBER STATES ARE ASKED TO WORK TOGETHER
ON IDENTIFYING CRITICAL RAW MATERIAL AND RARE EARTHS MINING, PROCESSING AND
WASTE VALORIZATION PROJECTS THAT CAN BE OPERATIONAL BY 2025
The former French Minister of Economy
pointed out that to work towards this goal, the EC has set up the European Raw
Materials Alliance, ERMA, to deal with the rare earths magnets and motors value
chain as a priority.
According to Breton, ERMA has prepared an
investment pipeline that is expected to contribute to solving the dependency
problem.
“If these projects were realized, 20% of
Europe’s rare earth needs could be sourced from the EU. Up from close to zero
today,” he said. What is needed now is to find financing, both public and
private.”
In his view, the national recovery plans
could provide funding in this respect, which would be aided by the Important
Projects of Common European Interest, IPCEIs. This initiative is available to
member states to de-risk investment and mobilize private actors.
“Secondly, I will also launch a dialogue
with downstream market players. I have already spoken with rare earth and
magnet producers, so I know that it is feasible for the EU to diversify
throughout the whole supply chain, from rare earths to magnet recycling. Now it
is time to speak with the downstream manufacturers in the automotive, wind
energy, defence and digital sectors using these magnets about what their
concerns are and how they can contribute to resilient EU value chains,” Breton
said.
As a third pillar in the strategy to
reduce Europe’s reliance on China, the Commissioner for Internal Market said that
as part of the EU Action Plan, his office has been fostering a number of
partnerships with resource-rich countries to secure a diversified supply of
sustainably mined critical raw materials away from a single source. These
partnerships focus on the integration of raw material value chains between the
EU and third countries, cooperation in the area of research and innovation and
social and environmental criteria.Breton
highlighted a recent deal signed with
Canada but said that the goal is to
also connect with some African countries, while the partnerships on the ground
are to be implemented by the members of the European Raw Materials Alliance and
the European Institute of Innovation and Technology.
Domestic sourcing
For the Commissioner, however, there aren’t enough
partnerships to fulfill the continent’s growing demand for critical raw
materials. Thus, he called on member states to start considering domestic
sourcing.
For him, this proposal not only refers to boosting
circularity and recycling and increasing the use of secondary raw materials,
but also to supporting mining projects.
“I believe that the reasons to explore sustainable mining in the EU are not only of economic and geopolitical nature.
We also have a moral obligation,” he said. “If we do not have an open debate
about sustainable mining in Europe, without taboos, we will continue in a
situation where we import raw materials from mines far away from our homes and
conveniently close our eyes on how they were sourced.”
Mining.com