Critical Raw Materials Act

The Critical Raw Materials Act (CRM Act) is a regulation by the European Union (EU) which aims to secure supply of critical raw materials to EU member states. The CRM Act primarily focuses on the expansion of the EU's domestic capacities to extract, process, and recycle raw materials. It has entered into force on May 23, 2024. Since 2011, the European Commission has triennially assessed a list of Critical Raw Materials (CRMs), with 14 CRMs identified in 2011, 20 in 2014, 27 in 2017, 30 in 2020 and 34 in 2023. These materials are mainly used in energy transition and digital technologies. Then, in March 2023, Commission President Ursula von der Leyen proposed the Critical Raw Materials Act, "for a regulation of the European Parliament and of the European Council establishing a framework for ensuring a secure and sustainable supply of critical raw materials". At the time, Europe depended on China for 98% of its rare-earth needs, 97% of its lithium supply and 93% of its magnesium supply.