Critical raw materials act

Why the need for an EU critical raw materials act?

The EU's demand for base metals, battery materials, rare earths and more is set to increase exponentially as the EU divests itself of fossil fuels and turns to clean energy systems, which necessitate more minerals.

The EU green transition will require the build-up of local production of batteries, solar panels, permanent magnets, and other clean tech. Abundant access to a range of raw materials will be needed to address the corresponding demand.

In addition, critical raw materials are important to the EU for:

Industrial value chains

Non-energy raw materials are linked to all industries across all stages of the supply chain.

Strategic technologies, such as space and defence

Technological progress and increasing quality of life depend on a varying and growing number of raw materials.

Climate, energy and environment

Clean technology requires raw materials, which are irreplaceable in solar panels, wind turbines, electric vehicles and energy-efficient lighting.

Local production is key for the EU's energy and mobility systems overhaul, which is in part driven by the REPowerEU plan and the EU's 2035 automotive emissions targets.

The EU critical raw materials act

In March 2024, the Council adopted the European critical raw materials act, as demand for rare earths is expected to increase exponentially in the coming years. 

Critical raw materials (CRMs) are raw materials of high economic importance for the EU, with a high risk of supply disruption due to the concentration of their sources and the lack of any good, affordable substitutes.

The act aims to:

• increase and diversify the EU's critical raw materials supply
• strengthen circularity, including recycling
• support research and innovation in relation to resource efficiency and the development of substitutes  

The new rules will also strengthen Europe's strategic autonomy.  

• Strategic autonomy: Council gives its final approval on the critical raw materials act (press release, 18 March 2024)

What are raw materials and what are they used for?

Metals, minerals and natural materials are part of our daily lives. Those raw materials that are most important economically and have a high supply risk are called critical raw materials.

Critical raw materials are essential to the functioning and integrity of a wide range of industrial ecosystems.

34 critical raw materials

Some sectors are especially strategic for the EU's renewable energy, digital, space and defence objectives.

Out of the 34 critical raw materials identified, a specific list of strategic raw materials (SRMs*) (see the 17 strategic raw materials in dark yellow below) has been created for the materials expected to grow exponentially in terms of supply, all of which have complex production requirements and thus face a higher risk of supply issues.

This list will be reviewed regularly.

*SRMs in HREEs and LREEs: Nd, Pr, Tb, Dy, Gd, Sm, and Ce

What are CRMs used for?

Critical raw materials are used everywhere. Without CRMs, most sections of society would be unable to function, as they are found in many everyday appliances and in products essential to the economy of every member state, such as smartphones, electric cars, wind turbines, plant fertilisers or aircraft.

Vibrating technology in phones = tungsten

Electric vehicles = lithium, cobalt and nickel

Wind turbines = boron

The geopolitics of sourcing CRMs

CRMs are mostly sourced from outside the EU. While the EU will never be self-sufficient, it is aiming to diversify its supply.

At present, the EU is solely dependent on a single country for certain critical raw materials:

• China provides 100% of the EU's supply of heavy rare earth elements
• Turkey provides 99% of the EU's supply of boron
• South Africa provides 71% of the EU's platinum requirements

Since 2024, third-country export restrictions on rare earth elements and other critical materials have reinforced the urgency of the EU's diversification strategy.

For instance, over the past three years, China has adopted a series of export control measures, covering CRMs such as gallium, tungsten, bismuth and rare earths, but also final products like batteries, or equipment related to processing rare earths elements.

In parallel, other global players have stepped up their action to secure access to CRMs for their industries by financing CRM projects and diversifying their supplies through partnerships.

Major EU suppliers of CRMs:

Strengthening self-reliance

To reduce dependence on third countries for accessing critical raw materials, the EU set the following objectives for 2030.

At least 10% of the EU's annual consumption from EU extraction.

At least 40% of the EU's annual consumption from EU processing.

At least 25% of the EU's annual consumption from domestic recycling.

Not more than 65% of the EU annual consumption of each strategic raw material at any relevant stage of processing from a single third country

To achieve this, the EU is stepping up trade actions, which includes:

• a critical raw materials club for all like-minded countries willing to strengthen global supply chains
• strengthening the World Trade Organization 
• expanding its network of sustainable investment facilitation agreements and free trade agreements
• pushing harder on enforcement to combat unfair trade practices

Strategic projects

To help meet those targets, in 2025 the Commission approved 60 strategic projects under the critical raw materials act, spanning 13 EU member states and 13 third countries.

The projects cover 14 of the 17 strategic raw materials and span the full value chain, from extraction and processing to recycling.

Reduced dependency is prioritised, with a focus on the most vulnerable supply chains. For example, dependency on a single country for rare earth extraction is projected to fall from 95% to 42% thanks to the implementation of selected projects.

The EU's dependency in respect of gallium (which is critical for semiconductors and the defence industry) will fall from 71% to 17%, while for germanium, the EU could achieve full supply independence by 2030.

• Selected strategic projects (European Commission)

Reinforcing security of supply and circularity

On 3 December 2025, the Commission adopted the RESourceEU action plan to accelerate and amplify efforts to secure the EU's supply of critical raw materials for key industrial sectors (such as the automotive industry, AI and defence) in the context of the heightened geopolitisation of such materials.

The plan proposes targeted amendments to the critical raw materials act to improve circularity, with the aim of increasing recycling capacity and strengthening the secondary market for critical raw materials, particularly in respect of permanent magnets.

Adopted on 4 March 2026, the Council position supports the proposed changes and:

• requires the Commission to notify member states and company boards in the event of any CRM supply risks
• clarifies the Commission's authority to propose risk mitigation measures
• allows the use of product passports to comply with information obligations with regard to permanent magnets

• Raw materials: Council adopts position to reinforce the security of supply and the circularity of EU industry (press release, 4 March 2026)
• Regulation amending the critical raw materials act, Commission proposal

The RESourceEU action plan also introduces several new instruments, including:

• a European critical raw materials centre
• a coordinated stockpiling approach
• a joint purchasing mechanism through the raw materials platform

• RESourceEU action plan, Commission communication

The future of demand

The EU's objective of cutting greenhouse gas emissions by at least 55% by 2030 sets Europe on a responsible path to becoming climate-neutral by 2050.

This will mean delivering the twin transition, decarbonising the energy system and ensuring autonomy through access and transformation of critical raw materials. 

Material demand in the European Union (high demand scenario):

The data represents a forecast of CRM demand for five strategic EU sectors: renewables, electric mobility (e-mobility), industry, information & communications technology (ICT) and aerospace and defence.

See also