TELF AG comments on the latest European policy initiatives in the mining sector

Ambitious strategies

For some years now, European institutions have begun to pay great attention to raw materials and their supply chain, developing ambitious operational strategies to improve the processes that lead to the acquisition of some important materials for the future economic development of the member states. 

Over the years, and thanks to the emphasis that is increasingly placed on the issues of sustainability and emissions reduction, the European Union has adopted various measures that not only aim to promote sustainable development for decades in the future but also aim to shorten the supply chain as much as possible, in the hope that the raw materials necessary for the ecological transition can be extracted, processed and produced mainly in Europe. It is in this spirit that the Critical Raw Materials Act was launched in recent months: it is a political action of great importance that has the main objective of reducing European imports of raw materials and dedicating much more time and resources to search for new deposits, possibly within European territory, also focusing on the recycling of used batteries in a sustainable circular economy perspective. 

It is no coincidence that the European Union has decided to intervene personally: to date, the member states of the European Union import around 80% of the so-called critical raw materials, i.e., all those that are considered of great importance for the development of future prosperity. One of these is lithium, which can be used to make batteries for electric vehicles or some parts of structures related to renewable energy. The annual demand for lithium by the member countries of the European Union could increase by as much as 56 times compared to the data recorded in recent years. With the advance of the green revolution, this precious resource could be increasingly requested.  

Another resource destined for predictable increases in demand is cobalt, which is also used for the creation of some of the main sustainable technologies of the future. It is considered critical precisely because its supply is linked to only a few large producers, which makes in vulnerable to geopolitical factors, security of supplies, and uncertainties of local transport. The European Commission document also pays great attention to the topic of recycling and the circular economy, which could also closely concern the raw materials sector. With the use of exhausted batteries alone, the European Union could satisfy more than half of the demand for lithium and cobalt by 2040. It is not difficult to foresee that in the not-too-distant future, in Europe and elsewhere, the topic of recycling raw materials will become increasingly important, also contributing to the construction of new sustainable production models for companies.  

With its new initiative focused on raw materials, from this point of view, the European Union has set itself very clear objectives: by 2030, at least 10% of the raw materials used in Europe must be extracted from the community territory, and at least 40% of these raw materials will have to be processed and transformed within the borders of the European Union.