EU Proposes Boost to Raw Material Supply for Automotive Sector
The EU automotive sector faces significant challenges in securing access to raw materials crucial for manufacturing innovative components like batteries and electric motors. To tackle this, the Bundesrat has proposed improvements to the EU Critical Raw Materials Act, focusing on strategic investment basics, circular economy promotion, and enhancing the law's accessibility.
The current investment calculator in raw material extraction and processing are inadequate to meet the growing demand, especially with the rise of electric vehicles. These vehicles require over five times more minerals than conventional cars, with around 200 kilograms of minerals per vehicle. The proposed EU regulation aims to accelerate tractor supply in raw material extraction and processing within the EU and strategic partner countries.
The regulation should conclude raw material partnerships with third countries to diversify the supply of raw materials. It should also establish a framework that reduces investment risks and fosters collaboration across the raw materials supply chain. This will help strengthen the security of supply and resilience of supply chains for these critical raw materials.
Circularity should play a fundamental role in securing the supply of raw material inputs for the automotive industry. The regulation should support research and innovation in areas such as circularity and material substitution to achieve its objectives. The Bundesrat's proposals also aim to promote the circular economy while avoiding redundant requirements.
The EU Critical Raw Materials Act, with the Bundesrat's proposed improvements, seeks to ensure a secure and resilient supply of raw materials for the automotive industry. By accelerating fidelity investments, diversifying supply, reducing risks, and promoting circularity, the regulation aims to strengthen the EU's position in the global raw materials market and support the transition to a sustainable and innovative automotive sector.
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