Recently, the European Parliament's Committee on Industry, Research and Energy (ITRE) announced it would elevate the recycling ratios of key metallic raw materials stipulated in existing regulations, promoting larger-scale development of waste recycling to ensure the European Union (EU) has access to essential raw materials like lithium, nickel, and cobalt for its future green transition.
In March 2023, the European Commission introduced the "Critical Raw Materials Act" aiming to assist the EU in mitigating dependence on imports of key raw materials vital for the green transition, realizing established climate goals and zero-carbon industrial objectives. Consequently, the EU set forth goals to “meet 10% of mineral needs through domestic resources, achieve over 15% waste recycling ratios, and process over 40% of strategic raw materials annually by 2030.” Furthermore, the EU has classified key raw materials according to different sectors; materials extensively utilized in pivotal areas like renewable energy and digital transformation, including copper, battery-grade nickel, battery-grade lithium, and cobalt, have been designated as "strategic raw materials."
In early September, the ITRE deliberated on the act and proposed more stringent requirements for the EU’s self-sufficiency level in key raw materials. The Committee underscored that to assure the security of the entire waste recycling industry chain, the EU should bolster waste management and enhance waste recycling ratios. On September 7th, the ITRE voted on the latest act, passing it with 53 votes in favor, one against, and five abstentions, indicating a boost in the target for domestic refining and processing capacity from the previously proposed 40% to 50%, while also elevating the recycling level of waste containing "strategic raw materials" to above 45%.
According to Reuters, various EU institutions are also discussing issues such as simplifying approval processes, bolstering the diversification of raw material imports, and raising sustainable standards for raw material processing. The European Parliament has also suggested strengthening international collaboration, accelerating approval processes for key "strategic projects," and providing additional financing channels within the EU.
Following its approval in a plenary session of the European Parliament, the "Critical Raw Materials Act" will enter negotiation processes between EU member states and the European Commission before obtaining final approval. Lead MEP Nicola Beer stated, "With a strong majority, the Industry Committee sends a strong signal ahead of the trilogue. The agreed report provides a clear blueprint for European security of supply, with a research and innovation boost along the entire value chain.”