The EU is intensifying efforts to achieve "strategic autonomy" in critical minerals and metals to meet booming demand for the energy transition, panellists said at this week's EIT Raw Material Summit in Berlin.
"Europe's demand for key material is only going to increase… we need to start paying sharp attention to overdependence," said Bernd Schafer, managing director at EIT Raw Materials.
His words were echoed by EU executives. "Shortages of critical materials are real, especially after 2030," said Maros Sefcovic, vice-president of the European Commission for interinstitutional relations. "There will be no green deal without critical raw materials… the fragility of Europe's supply chain has become evident, and we have a strong mandate to act now."
The key actions to reduce Europe's dependency on third countries include to strengthen the security of raw materials supply, creating strategic partnerships like the ones agreed with Canada or Ukraine, scale up recycling and boosting sustainable domestic projects while at the same time work on social acceptance challenges. Sefcovic also said that the EU "was exploring stockpiling options" but did not provide with specific details.
"We should not accept situations in which more than 25pc of total supply of critical materials comes from one area," said Philippe Varin, head of the French government mission on critical materials.
Varin emphasised that 70pc of the European needs of material for gigafactories are expected to come from regions outside Europe. And rare earths — key materials in wind turbines for their conductive and magnetic properties — are 95pc sourced from China.
A large scaling-up and speeding up of renewable energy is expected in the next decade as it was evidenced in the recently announced REPowerEU Plan. This plan, a response to the hardships and global energy market disruption caused by Russia's invasion of Ukraine, includes, for instance, an EU Solar Strategy to double solar photovoltaic capacity by 2025. There are plans to accelerate growth of battery value chain too. But to meet these goals, production of metals such as graphite, silicon, lithium or cobalt will have to increase exponentially, delegates heard.
To meet demand, a change in attitude towards local mining was needed, delegates heard, and permitting processes in areas with lower environmental risks should be simplified. As Varin noted, it can take 5-7 years between a mine investment decision and the start of operations.
"Europe will need more refinery announcements in the next five years to keep pace with energy transition," said Chris Heron, communication and public affairs director at industry association Eurometaux. Member states will need to overcome challenges including local opposition, delayed permits or untested technology, he said.
"Europe will rely on [metals] imports for the short-medium term," Herron added. He expects recycling to take a much bigger role in meeting increasing demand from 2035 onwards. Eurometaux estimates that 65-75pc of Europe's 2050 cathode needs could come from recycling as long as there are process improvements and economic viability. "The energy transition is a commodities transition, and without urgent action now Europe's ability to secure the right level of strategic autonomy for energy transition metals beyond 2030 is at risk," Herron concluded.
