CRMA: Supporting Supply Chains for the Energy Transition
The European Institute of Innovation and Technology (EIT) RawMaterials has issued a call to secure Europe's connections in critical raw material supplies.
By advocating for a substantial €4bn (US$4.1bn) investment under the upcoming Framework Programme 10 (FP10), the organisation aims to tackle Europe's heavy reliance on non-European imports vital for technologies powering green and digital transformations.
Vulnerabilities in European supply chains
With its economic ambitions largely hinged on continuous access to critical raw materials (CRMs), Europe finds itself at a precarious juncture due to its dependency on imports.
These materials are essential across various sectors including renewable energy, digital technology, aerospace and defence.
More than 70% of the raw materials that are crucial for clean energy technologies and batteries are currently imported, exposing Europe to significant risks amidst global geopolitical instability and potential logistical disruptions.
This vulnerability has not gone unacknowledged.
The European Union has put forward the Critical Raw Materials Act (CRMA) which sets forth objectives to be met by 2030.
The goals include increasing domestic production of raw materials to 10%, expanding processing capacity to 40% and achieving a 25% recycling rate for key materials.
The CRMA is explicit about the stakes involved: “Critical raw materials are indispensable for the EU economy and necessary for a wide range of technologies in strategic sectors.”
However, realising these targets is no small feat—it will require extensive investments and collaboration across various industries, academic institutions and Member States.
Unlocking economic opportunities
Investment in the raw materials sector is not just a measure for risk mitigation; it’s a lucrative economic opportunity.
According to a report by the European Commission, by 2030 the raw materials sector has the potential to generate €2tn (US$2.06tn) in economic value and support 32 million jobs across Europe.
EIT RawMaterials is leading the charge with its €4bn (US$4.1bn) proposal for FP10.
This funding is designed to accelerate innovation, support sustainable mining and drive circular economy practices, which include efficient recycling and reuse of materials.
"The crucial role of raw materials in Europe’s future has never been more apparent," says Bernd Schäfer, CEO, Managing Director, EIT RawMaterials.
The Draghi Report on European Competitiveness, which will form the foundation for the new European Commission’s flagship Competitiveness Compass, ranks raw materials as the second most critical issue for Europe, closely following energy security.
This policy paper outlines a pathway to build a resilient and sustainable raw materials supply chain — essential for Europe’s competitiveness and industrial future. Framework Programme 10 presents a unique opportunity to unlock large-scale private sector investment, accelerating innovation and industrialisation.
It is vital to build upon the investments made under the Horizon and Horizon Europe programmes over the past decade and the strong foundation of the raw materials knowledge and innovation community established as part of the EIT ecosystem.
Strengthening through collaboration and innovation
To transform this plan into reality, EIT RawMaterials is collaborating with an array of stakeholders including European institutions, private investors and academia.
The strategy laid out focuses heavily on drawing private investments, cultivating cutting-edge technologies and building a workforce adept at navigating the complexities of the raw materials sector.
EIT, being Europe’s largest innovation network, has already made a start; training 800,000 individuals, supporting over 10,000 start-ups valued collectively at €72bn (US$74.2bn) and drawing €9.2bn (US$9.4bn) in investments.
Building on these successes, the planned funding under FP10 will further boost research, education and innovation in the raw materials sector with a keen focus on eco-friendly mining techniques and sophisticated recycling processes.
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