{"id":85468,"date":"2023-05-05T13:02:38","date_gmt":"2023-05-05T11:02:38","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=85468"},"modified":"2024-09-30T14:38:10","modified_gmt":"2024-09-30T12:38:10","slug":"critical-raw-materials-how-the-eu-wants-to-secure-supplies","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/critical-raw-materials-how-the-eu-wants-to-secure-supplies\/","title":{"rendered":"Critical raw materials: How the EU wants to secure supplies"},"content":{"rendered":"

Reliable access to critical raw materials is crucial if the energy transition in Europe is to succeed. To achieve this goal, the European Union has launched a comprehensive package of legislation to ensure that companies succeed in the transformation to a climate-neutral economy.<\/span><\/strong><\/p>\n

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Increasing export restrictions on critical raw materials<\/h2>\n

Around 30 different raw materials that are considered strategically relevant are on the EU’s list of Critical Raw Materials. , As the OECD<\/strong> found in a report, export restrictions already apply to many of them and since 2009, the number of restrictions has increased fivefold. Overall, trade barriers apply to around ten percent of all critical raw materials traded worldwide.<\/p>\n

In addition to a lot of paperwork, this means that companies that buy critical raw materials or raw material-containing precursors can see their sources dry up abruptly – at the very moment when political decisions are made against free trade in the goods they need. Companies should therefore establish where their raw materials come from.<\/p>\n

Europe is massively dependent on imports for most of the materials needed for the transformation to carbon neutrality. One of the most important trading partners is China<\/a>. After realizing its one-sided dependence on Russian natural gas, European policymakers want to reduce such risks in the future and have passed the Critical Raw Materials Act to this end.<\/p>\n

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\n Key elements of the Critical Raw Materials Act\n <\/h3>\n\n
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The Critical Raw Materials Act is intended to reorganize the supply of raw materials in the European Union. Clearly defined targets are to be achieved by 2030:<\/p>\n