Critical Raw Materials Act

The Critical Raw Materials Act (CRMA) is a European Union regulation proposed by the European Commission in March 2023 and adopted in 2024 as part of the bloc's Green Deal Industrial Plan. It aims to secure a stable and sustainable supply of raw materials deemed essential for the green and digital transitions, defence, and aerospace — including lithium, cobalt, nickel, rare earth elements, gallium, and silicon metal.

The regulation establishes two parallel lists: critical raw materials and a narrower set of strategic raw materials subject to specific benchmarks. By 2030, the EU is to:

• Extract at least 10% of its annual consumption of strategic raw materials domestically.
• Process at least 40% of annual consumption within the EU.
• Recycle at least 25% of annual consumption from EU waste streams.
• Ensure that no more than 65% of annual consumption of any strategic raw material at any relevant stage of processing comes from a single third country.

The CRMA also creates a framework for designating Strategic Projects — both inside the EU and in partner countries — that benefit from streamlined permitting (typically capped at 27 months for extraction projects), easier access to finance, and coordinated support. Member states must adopt national exploration programmes, and large companies will be required to conduct supply-chain risk assessments.

The regulation responds to concerns highlighted after the COVID-19 pandemic and Russia's 2022 invasion of Ukraine, and particularly to China's dominance in rare earth processing. It complements the EU's Net-Zero Industry Act and parallels U.S. initiatives such as the Inflation Reduction Act and the Minerals Security Partnership.

Critics, including some environmental NGOs and Indigenous-rights groups, argue the accelerated permitting risks weakening environmental review, while industry voices have questioned whether the 2030 benchmarks are achievable without substantial additional public investment.