The role of critical raw materials in conditions of economic uncertainty: the EU experience

Abstract

The demand for minerals is set to increase in the future due to the global competition, industrialization in the developing countries, digitalization of the developed economies as well as the social and economic shocks in the course of a deep transformation of the international economic order. Dependence on the critical raw materials may soon replace the dependence on oil and gas. A reliable and sustainable supply of both primary and secondary raw materials, especially of the critical raw materials for the key technologies and strategic sectors such as the renewable energy, electric mobility, digital technologies, space and defense, is a prerequisite for achieving national security and independence. The new EU Industrial Strategy addresses security and sustainable development and calls for active action on critical raw materials and creation of sector-specific raw material alliances. This EU policy pursues a strategy of diversification in providing non-energy raw materials for EU value chains and ensuring the social welfare. Diversification of supply is related to reducing the dependencies in all areas by supplying primary raw materials from the EU, by increasing the supply of secondary raw materials through efficient use of resources, and by finding alternatives to scarce raw materials. One of the priority actions was to create a list of critical raw materials at the EU level.