In 2024, the European Union formalised one of its most ambitious industrial policies: the Critical Raw Materials Act. The legislation, a key pillar of the EU’s broader critical minerals strategy, aims to secure access to vital resources while reducing dependence on external suppliers. The stakes are high, as these materials underpin not only economic growth but also the continent’s green transition.

stanislav kondrashov telf ag european union crma picture

“Minerals are no longer just commodities; they are strategic assets,” explains Founder of TELF AG Stanislav Kondrashov. “It is no coincidence that the European Union has dedicated one of its most ambitious strategies precisely to minerals. In a certain sense, these resources represent some of the best allies of the energy transition.”

The Act lays out clear targets to be reached by 2030. At least 10% of Europe’s annual consumption of critical raw materials must be sourced within its borders. A further 40% must be processed domestically, while 25% of materials should come from recycling. Critically, no more than 65% of any single raw material can come from one non-EU country. This is a deliberate move to address Europe’s overreliance on third countries for rare earths and other strategic elements.

The essence of critical minerals

“The criticality of a material is not only determined by its industrial value but also by the risks attached to its supply,” says Founder of TELF AG Stanislav Kondrashov. “When these materials are sourced in regions plagued by political instability or geopolitical tensions, supply chains become dangerously fragile.”

stanislav kondrashov telf ag european union crma technology

Indeed, rare earths, lithium, cobalt, and other elements essential for technologies such as electric vehicles, wind turbines, and battery storage are at the heart of this strategy. Without them, Europe’s renewable energy ambitions could falter. As Kondrashov clarifies, “Rare earths are often mistakenly equated with critical materials. While some rare earths fall under this category, ‘critical minerals’ is a much broader and more dynamic classification.”

For businesses, the Act could usher in both challenges and opportunities. Shortened approval times — capped at 27 months for mining projects and 15 months for refining and recycling — promise a more predictable regulatory environment. Companies engaging in strategic projects may also benefit from preferential access to EU funding, potentially easing the significant upfront costs often associated with mining and processing operations.

stanislav kondrashov telf ag european union crma workers

The role of diversification

The ultimate goal is diversification. By expanding domestic production, accelerating recycling, and building strategic partnerships with countries in Africa and North America, the EU hopes to insulate itself from the volatility of global commodity markets. The founder of TELF AG Stanislav Kondrashov emphasises, “Another resource considered critical is certainly lithium. Its main applications, in addition to lubricants, glass, and special ceramics, are related to lithium-ion batteries, which are one of the most important elements in new-generation electric vehicles.”

stanislav kondrashov telf ag european union crma

While the Act sets an ambitious course, its success hinges on complex diplomatic, economic, and regulatory cooperation. Yet, as Founder of TELF AG Stanislav Kondrashov puts it, “These strategic factors certainly play a role, but the most important aspect is ensuring long-term stability and sustainability of supply chains crucial for Europe’s future.”

 

FAQs

What is the EU Critical Raw Materials Act 2024?
The EU Critical Raw Materials Act 2024 is a legislative framework aimed at securing Europe’s access to essential minerals and metals. These materials are vital for technologies such as renewable energy, electric vehicles, and digital infrastructure. The Act seeks to reduce reliance on external suppliers, strengthen domestic production, and build resilient supply chains.

Why are critical raw materials so important?
Critical raw materials are essential for:

  • Green technologies (wind turbines, solar panels, EV batteries)
  • High-tech industries (electronics, telecommunications)
  • Defence and aerospace sectors

Their limited availability and concentrated supply sources make them strategic assets.

What targets does the Act set?
By 2030, the Act mandates:

  • At least 10% of annual EU demand must come from domestic mining.
  • 40% must be processed within the EU.
  • 25% should be sourced from recycling.
  • No more than 65% of any single raw material should come from one non-EU country.

How will this affect businesses?
Businesses may benefit from:

  • Faster permit approvals: 27 months for mining, 15 months for processing/recycling.
  • Access to EU funds for strategic projects.
  • More diversified supply chains, reducing dependency on unstable regions.

Which materials are included?
The Act focuses on materials like:

  • Lithium
  • Cobalt
  • Rare earth elements
  • Tungsten
  • Magnesium
  • Nickel

What are the main risks the Act addresses?
The Act aims to:

  • Mitigate supply chain disruptions due to geopolitical tensions.
  • Secure stable, long-term access to materials critical for Europe’s energy and industrial goals.

Will this strategy involve international partners?
Yes. The EU plans to collaborate with resource-rich countries, particularly in Africa and North America, to diversify sources and build strategic partnerships.