Critical Raw Materials

Definition

‘These are raw materials which are economically and strategically important for the European economy, but have a high risk associated with their supply. Used in environmental technologies, consumer electronics, health, steel-making, defence, space exploration and aviation, these materials are not only “critical” for key industry sectors and future applications, but also for the sustainable functioning of the European economy.’

Source: CRM Alliance

Explainer

The ‘critical’ classification comes not necessarily from scarcity, but rather from the minerals’ economic significance, high-risk supply and lack of viable substitutes. The green transition’ necessitates secure access to these energy transition minerals, meaning we must confront issues around energy geopolitics, over-dependencies, imbalances in supply and demand, and resource nationalism. The EU’s Critical Raw Materials Act aims to mitigate some of these problems through regulations, innovation, environmental protection, import diversification and the development of strategic partnerships.