Europe needs to streamline and accelerate existing permitting procedures for raw materials, while complying with the highest environmental and social standards, EU Commission Vice-President Maros Sefcovic said at the press conference following the informal COMPET Council on February 1.
“We know that the broad deployment of clean and digital technologies will lead to a rising demand for raw materials. We also know that Europe is highly dependent on a limited number of non-EU countries, which often have lower environmental and social standards for these raw materials. Moreover, some have already used their monopoly as a geopolitical instrument, leaving Europe vulnerable,” Sefcovic said.
“We must therefore prepare for future supply chain disruptions – because it is not a question of if, but when,” the Commission VP in charge of strategic foresight said.
“For instance, we are likely to see a global shortage of lithium, an essential ingredient of batteries, which are already seeing record-high prices. This follows a similar shortage and price hike in magnesium at the end of last year,” Sefcovic said, warning that such trends not only harm the competitiveness of European companies but also constrain industrial production in Europe.
“To change the game, we must all throw our weight behind efforts to secure supplies of sustainable raw materials – from industrial and innovation actors to Member States,” he said.
Sefcovic highlighted three points, following his discussion with Ministers on how to build domestic capacity in critical raw materials along the entire value chain.
“First, I have invited Member States to urgently review, streamline and accelerate their permitting procedures at national and regional levels,” he said.
He noted that, for instance, Europe has close to 260 important deposits of key battery materials as well as the state-of-the-art technologies and expertise necessary for their responsible and sustainable exploration and exploitation.
“But we need to increase the efficiency and predictability of existing permitting procedures, as they often take as long as 5 to 7 years. At the same time, we want to strengthen compliance with the highest environmental standards laid down in EU legislation and provide for proactive and early engagement with the public,” he said.
“Second, I informed Ministers that our dedicated Alliances have launched landmark initiatives to mobilise funding and financing for primary and secondary battery raw materials projects,” he said.
Sefcovic reminded that the European Battery Alliance has established a new public-private Sustainable Battery Materials Fund set to invest some €400 million. It is estimated that this could cover some 10 projects.
The European Raw Materials Alliance has created a Clean Technology Materials Task Force, bringing on board the European Investment Bank and the European Bank for Reconstruction and Development.
“Third, we must invest not only in primary raw materials but also in recycling, critical for a secure supply of secondary raw materials,” Sefcovic said. “Today, only 12 percent of raw materials used in EU industry come from recycling. We must do better,” he added.
He praised European battery champion Northvolt which has produced its first battery cell made with 100% recycled nickel, manganese and cobalt. In addition, the company has developed a highly efficient recycling process allowing for the recovery of up to 95% of the metals used in a battery.
