Europe and Australia move closer on critical raw materials.

On the 23rd May the EU Critical Raw Materials Act (CRMA) entered into force. The main objective of the CRMA is to establish and maintain a secure and sustainable supply of Critical Raw Materials to the EU.
The CRMA lists 34 materials which are considered strategic. Of these 17 are considered critical such as copper, cobalt and battery grade graphite.

The CRMA calls for specific goals in relation to mining, recycling and processing of critical raw materials.

• 10% of all critical raw materials consumed in the EU to be mined and produced in the EU by 2030. Therefore, new exploration projects in the EU, will receive increased attention and potentially more accessible and favourable extraction conditions. 
• A significant increase in recycling efforts, totalling up to 25 % of annual consumption in the EU by 2030. Waste landfills in Europe are expected to comprise large quantities of critical raw materials that could turn into lucrative mines. EU Member States are encouraged to devise measures to increase the circularity of their economies.
• 40% of all critical raw materials consumed in the EU are to be processed in the EU by 2030.

 
The CRMA is designed to strengthen all stages of the European critical raw materials value chain, diversify the EU’s imports to reduce strategic dependencies, improve the EU’s capacity to monitor and mitigate risks of disruptions to the supply of critical raw materials, and improve circularity and sustainability.

The first call for projects to be deemed “strategic projects” opened on 23 May and will close on 23 August 2024.

Those projects that receive 'Strategic Project' designation will benefit from more streamlined and efficient permitting procedures, as well as facilitated access to finance avenues.

Projects from third party countries such as Australia may qualify if they meet the objectives of the CRMA and the wider EU Green Deal.

Strategic Projects should be flagship projects with respect to technological innovation and sustainability. Applications to be lodged on the EU portal must include supporting documentation including detailed technical studies, timetable for development, permitting information, and sustainability practices. Also, a business plan should be attached for assessment of the viability of the project.

For projects in “third countries” such as Australia and Canada (outside the EU but considered strategic partners) the EU has pledged to work with those partner countries to assist with permitting and sustainability practices where possible.

In this respect, the signing of the MOU on a CRM partnership between Australia and the EU which was signed on 28 May 2024 was an important and integral step in the EU CRM Act for Australia.

The partnership seeks to enable the EU to diversify its supplies of materials necessary for the green and digital transitions, whilst contributing to the development of Australia's domestic critical minerals sector.
The partnership covers the entire critical and strategic minerals value chain: exploration, extraction, processing, refining, recycling, and processing of extractive waste.

 In addition to jointly developing projects along the entire value chain in the EU and in Australia, the partnership will also explore cooperation in countries where the EU and Australia have mutual interests, focusing on reducing environmental impacts and benefiting local communities. Additionally, it promotes innovative and digital technologies and services for mining, and other projects along the critical minerals value chain.

The agreement seeks to enhance cooperation between Australia and the EU in 3 main areas:
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• Integration of sustainable raw materials value chains, including networking, joint facilitation of projects (e.g., via joint ventures), creation of new business models and promotion and facilitation of trade and investment linkages, ensuring the well-functioning, sustainability, and resilience of these critical supply chains.
• Cooperation on research and innovation along the raw materials value chains, including on minerals knowledge and the minimisation of environmental and climate footprint.
• Cooperation to promote high environmental, social, and governance standards and practices, as well as improved policy alignment, driven by full respect of worker's conditions and safety, and by the need of a sustainable and secure production of critical minerals.

Following the signature of the MoU, a roadmap with concrete actions will be jointly developed to put the Strategic Partnership into practice, over the next six months.