CRMA: Strengthening Critical Raw Material Supply Chains
The European Institute of Innovation and Technology (EIT) RawMaterials has issued a bold call for action to secure Europe’s raw materials supply chains.
Advocating for €4bn (US$4.1bn) in funding under the upcoming Framework Programme 10 (FP10), the organisation aims to address Europe’s critical dependence on imports of essential raw materials. With the demand for these materials soaring globally, particularly for technologies driving the green and digital transitions, this investment is deemed essential to bolster European competitiveness.
Europe’s supply chain vulnerabilities
Europe’s economic goals hinge on access to critical raw materials (CRMs). These resources, indispensable for renewable energy, digital advancements, aerospace and defence, are currently sourced predominantly from non-European countries.
More than 70% of the raw materials vital for clean energy technologies and batteries are imported. Such dependency creates vulnerabilities, particularly in the face of geopolitical tensions or disruptions in global supply chains.
In recognition of this, the European Union adopted the Critical Raw Materials Act (CRMA), setting ambitious targets for 2030:
- Increase Europe’s domestic raw material production to 10%.
- Expand processing capacity to 40%.
- Achieve a 25% recycling rate for key materials.
The CRMA is explicit about the stakes involved: “Critical raw materials are indispensable for the EU economy and necessary for a wide range of technologies in strategic sectors.”
While the policy sets a roadmap, achieving these targets will require substantial investment and collaboration across industries, institutions and Member States.
The economic potential of strategic investment
Beyond mitigating risks, the raw materials sector offers a massive economic opportunity.
A recent European Commission report estimates the sector could generate €2tn (US$2.06tn) in value by 2030, supporting 32 million jobs. These figures highlight how investment in this area could secure Europe’s long-term prosperity.
EIT RawMaterials is leading the charge with its €4bn (US$4.1bn) proposal for FP10. This funding is designed to accelerate innovation, support sustainable mining and drive circular economy practices, which include efficient recycling and reuse of materials.
Together, these initiatives aim to reduce Europe’s reliance on external suppliers and establish a self-sustaining supply chain.
Such a transformation is not just about securing resources. It also means fostering technological leadership and creating new markets for sustainable practices, which can make Europe a pioneer in green and digital transitions.
"The crucial role of raw materials in Europe’s future has never been more apparent," asserts Bernd Schäfer, CEO, Managing Director, EIT RawMaterials.
The Draghi Report on European Competitiveness, which will form the foundation for the new European Commission’s flagship Competitiveness Compass, ranks raw materials as the second most critical issue for Europe, closely following energy security.
This policy paper outlines a pathway to build a resilient and sustainable raw materials supply chain — essential for Europe’s competitiveness and industrial future. Framework Programme 10 presents a unique opportunity to unlock large-scale private sector investment, accelerating innovation and industrialisation.
It is vital to build upon the investments made under the Horizon and Horizon Europe programmes over the past decade and the strong foundation of the raw materials knowledge and innovation community established as part of the EIT ecosystem.
Collaboration and innovation for a resilient future
To realise this vision, EIT RawMaterials is partnering with a diverse range of stakeholders, including European institutions, private investors and academic institutions.
Its strategy focuses on attracting private capital, fostering breakthrough technologies and developing a skilled workforce capable of meeting the sector’s challenges.
This collaborative approach builds on the EIT’s existing success. As Europe’s largest innovation network, the EIT has already trained 800,000 individuals, supported more than 10,000 start-ups valued at €72bn (US$74.2bn) collectively and attracted €9.2bn (US$9.4bn) in investments.
The planned investment under FP10 will build on these achievements to advance research, education and innovation in the raw materials sector. Sustainable practices like environmentally friendly mining and advanced recycling processes will be central to this effort.
By aligning these initiatives with the CRMA’s goals, Europe has a chance to position itself as a leader in raw material sustainability and industrial resilience.
EIT RawMaterials’ policy paper serves as both a call to action and a blueprint for Europe’s future. Its vision emphasises not just securing raw materials but doing so in a way that underpins the continent’s industrial growth and leadership in the global green transition.
Europe’s success in this sector will depend on decisive action, robust investment and the strength of its partnerships.
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