The EU's Critical Minerals Gap By 2030

Overview of the Critical Raw Material Act

The European Union has established the Critical Raw Material Act with the aim of bolstering the resilience of its critical mineral supply chains. The Act sets forth several ambitious goals, including non-binding targets for the EU to develop sufficient mining capacity to meet 10% of its critical mineral demand from within its own borders. The Act also sets a goal for 40% of demand to be met by processing within the bloc, and 25% through recycling.

The Challenge Ahead for the EU

A few months after the Act was passed in May 2024, it became clear that the EU faces a significant challenge in meeting these goals. The data, provided by Benchmark Mineral Intelligence as of July 2024, shows that with the exception of nickel mining, none of the battery minerals deemed strategic by the EU are on track to meet these targets. Notably, graphite, which is the largest mineral component used in batteries, is a particular concern. There is currently no EU-mined supply of manganese ore or coke, which is the precursor to synthetic graphite.

Projected Supply of Critical Materials

By 2030, the European Union is projected to supply 16,000 tonnes of flake graphite locally, falling significantly short of the domestic mining target of 45,000 tonnes. The bloc is also expected to produce 29,000 tonnes of lithium carbonate equivalent (LCE), compared to a target of 46,000 tonnes. In terms of mineral processing, the bloc is projected to process 25% of its lithium requirements, 76% of nickel, 51% of cobalt, 36% of manganese, and 20% of flake graphite. However, the EU is expected to recycle only 22% of its lithium needs, 25% of nickel, 26% of cobalt, and 14% of manganese. Graphite is not widely recycled on a commercial scale.

Bottom Line

The European Union's ambitious goals to secure its supply of critical minerals present a significant challenge. The projected figures indicate that the bloc is currently off track in meeting the targets set out in the Critical Raw Material Act. This raises questions about the EU's ability to secure its supply of critical minerals, especially given the increasing importance of these minerals in various industries, including the battery industry. What are your thoughts on the EU's critical minerals gap? Do you think the targets set out in the Critical Raw Material Act are achievable? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.