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EU Commission:

Securing Critical Raw Materials for Green Tech

Goal: Secure EU supply chain

Community improvement

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The Critical Raw Materials Act is an EU law that forces big companies to check and report where they get essential materials like lithium and cobalt, and it creates a public list of contracts to make sure the EU can keep a steady supply of these materials for green tech and digital stuff.

Transparency
Transparency

Document summary The source

Critical Raw Materials Act (CRMA) – Regulation (AE) 2024/1252

  • Purpose
    The CRMA is part of the EU’s strategy to secure a reliable, sustainable supply of critical raw materials needed for the green transition and digital economy. It aims to reduce dependence on single suppliers, especially from China, and to strengthen the EU’s supply‑chain resilience.

  • Key Dates

  • Regulation entered into force on 23 May 2024.

  • The Commission must publish a database of strategic contracts and monitor supply chains from this date.

  • Strategic Contracts

  • The Commission will issue up to 4 calls for strategic contracts each year.

  • Each call should result in at least 47 strategic contracts within the EU and 13 outside the EU.

  • Contracts cover critical raw materials such as rare earths, lithium, cobalt, and other metals essential for batteries, wind turbines, and other green technologies.

  • Obligations for Large Companies (≥ 500 employees or €50 million turnover)

  • Risk assessment of their supply chain for critical raw materials.

  • Reporting on the assessment, including measures taken to diversify suppliers and reduce risk.

  • Transparency: disclose the origin of critical raw materials and any potential supply‑chain bottlenecks.

  • Compliance with the Commission’s database and any additional requirements under Articles 24, 28, and 29.

  • Commission Responsibilities

  • Maintain a public database of all strategic contracts.

  • Monitor the market for supply‑chain risks and advise on mitigation measures.

  • Provide guidance and support to companies on risk assessment and reporting.

  • Enforce the regulation under Article 38, including penalties for non‑compliance.

  • Legal Basis and Scope

  • Article 1 sets the purpose and scope, covering all critical raw materials listed in the EU’s Critical Raw Materials List.

  • Article 7 details the procedure for issuing calls for strategic contracts.

  • Articles 24, 28, 29 lay out the obligations for large companies.

  • Article 38 covers enforcement, penalties, and the Commission’s powers.

  • Implementation

  • The regulation is fully binding across all EU Member States.

  • Companies must start reporting from the first reporting period after 23 May 2024.

  • The Commission will publish guidance and a reporting template within six months of the regulation’s entry into force.

  • Impact

  • Strengthens the EU’s supply‑chain resilience for critical raw materials.

  • Encourages diversification of suppliers and investment in domestic production.

  • Supports the EU’s climate and digital goals by ensuring the availability of essential materials.

Licensing: This article is available under Creative Commons Attribution 4.0 (CC BY 4.0).