EU Strengthens Strategic Autonomy with Adoption of the Critical Raw Materials Act

On 18 March 2024, the Council formally adopted the regulation establishing a framework to ensure a secure and sustainable supply of critical raw materials, known as the Critical Raw Materials Act (CRMA), marking the final step in the legislative process.

The CRMA:

• Provides clear guidelines and defined timelines for permitting procedures relating to extraction projects within the EU;
• Allows the European Commission and Member States to identify strategically important projects;
• Introduces supply chain risk assessment requirements;
• Obliges Member States to develop national exploration programmes;
• Strengthens the EU’s access to critical and strategic raw materials through ambitious targets for extraction, processing, recycling and diversification of import sources.

The final text includes two lists of raw materials — 34 classified as critical and 17 as strategic — considered essential for the green and digital transitions, as well as for key sectors such as defence and aerospace.

The CRMA establishes three headline targets for meeting the EU’s raw material consumption needs:

• 10% sourced through domestic extraction;
• 40% processed within the European Union;
• 25% supplied through recycled materials.

To facilitate the development of strategic projects, Member States will designate single points of contact at the appropriate administrative levels and across relevant stages of the critical raw materials value chain.

Extraction projects will be required to obtain permits within a maximum of 27 months, while processing and recycling projects should receive approval within 15 months, subject only to limited exceptions designed to ensure proper community engagement and comprehensive environmental assessments in more complex cases.

Large companies operating in strategic technology sectors, including battery, hydrogen and renewable energy manufacturers, will be required to conduct risk assessments of their supply chains in order to identify potential vulnerabilities.

Following the Council’s approval of the European Parliament’s position on 18 March, the legislative act was formally adopted. Once signed by the Presidents of the European Parliament and the Council, the CRMA will be published in the Official Journal of the European Union and will enter into force twenty days after publication.