As part of the CE-RISE project, ECOLOGICON contributes to the sustainable manage-ment of critical raw materials (CRM) by developing a circular economy resource information system to enhance the reuse, remanufacturing, and recovery of these essential resources from electronic products [2]. In this blog post, we aim to outline the fundamentals of CRMs, define their scope, and highlight their importance for the EU.

What are Critical Raw Materials?

According to the EU definition, materials are considered critical when they possess both high economic value and significant supply chain risk. Supply chain risk increases when a material’s production is concentrated in one or a few regions globally, especially if those regions are prone to conflict. Additional factors such as recycling and substitution potential also influence this assessment [3]. Critical raw materials are essential for a wide range of applications, including the production of advanced technologies such as renewable energy systems (e.g., wind turbines, solar panels, and batteries), electric vehicles, digital infrastructure, aerospace components, and medical devices.

Due to their high importance for green technologies, CRMs and their availability have a key role in the transition to a climate-neutral future. As global population growth, industrialization, digitalization, and rising demand from developing countries drive up resource consumption, the transition to climate-neutral technologies intensifies the scarcity of critical raw materials [4]. The OECD forecasts global materials demand to rise from 79 billion tonnes in 2023 to 167 billion tonnes by 2060 [1]. To address this, the EU intends to adopt a strategic approach to securing CRM supplies. Initiatives like the European Green Deal outline objectives to efficiently manage CRMs and reduce the EU’s dependency on other countries for their supply [1].

The EU’s dependency on Critical Raw Materials

Currently the EU is dependent on most of the critical raw materials. The most important materials are classified into the following categories: industrial and construction minerals, iron and ferro-alloy metals, precious metals, rare earths, other non-ferrous metals, bio and other materials [1]. Further, strategic raw materials are defined which especially contribute to a higher economic value. For example, lithium which is categorized as a non-ferrous metal, is of high strategic importance and is primarily used in batteries. China is currently accounting for 56% of the global supply of lithium [1].

In figure 1, global suppliers of selected CRMs are shown. Most of the critical raw materials are sourced in China, they are responsible for 56 % of the global supply of Aluminium and 60% of Cobalt. In addition, China provides 100 % of EU’s supply of heavy rare earth elements [5]. Other countries hold leading positions in specific raw materials. For example, Brazil with a Niobium share of 92 % or South Africa with an Iridium share of 93% [1]. Niobium is primarily used for steel production and Iridium for Chemical and automotive catalysts as well as electronic applications [1]. The concentration of the raw materials to a few regions globally poses a high supply risk especially for the EU because of the low natural sources based in the EU.

One critical strategy for reducing dependency on critical raw materials (CRMs) is recycling. However, the current state of recycling in the EU highlights a significant challenge: two-thirds of CRMs have a recycling rate of less than 3% [1]. This underutilization not only intensifies reliance on limited resources but also underlines the need for innovative solutions. Implementing a digital product passport, as explored in the CE-RISE project, is one approach to enhancing recycling rates and reducing reliance on critical raw materials. The specifics of what a digital product passport entails and how it is applied will be detailed in future blog posts.

New articles building on this topic will be published every two weeks from now on.

References

[1] Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, Ed., “Study on the Critical Raw Materials for the EU 2023 – Final Report,” Luxembourg: Publications Office of the European Union, 2023.
[2] CE-RISE, “Homepage – CE-RISE,” CE-RISE, 05 Aug., 2022. Accessed: Jan. 9, 2025. [Online]. Available: https://ce-rise.eu/
[3] Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. “Crit-ical raw materials.” Accessed: Jan. 9, 2025. [Online]. Available: https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials_en
[4] Critical Raw Materials Alliance c/o Ridens Public Affairs. “Critical Raw Materials: What are Critical Raw Materials?” Accessed: Jan. 9, 2025. [Online]. Available: https://www.crmalliance.eu/critical-raw-materials
[5] General Secretariat of the Council. “An EU critical raw materials act for the future of EU supply chains.” Accessed: Jan. 9, 2025. [Online]. Available: https://www.consilium.europa.eu/en/infographics/critical-raw-materials/