Critical Materials Raw as Leverage in Global Geopolitics

Abstract

The most economically critical and high supply risk raw materials are called critical raw materials and are essential to the functioning and integrity of a wide range of industrial ecosystems. The enormous appetite for resources (energy, food and raw materials) exerts extreme pressure on the planet, being the cause of half of greenhouse gas emissions and more than 90% of biodiversity decline and water stress. Resource access and sustainability are key to the EU’s resilience in terms of raw materials. The Critical Raw Materials Act is an essential element of the equation in this generational societal transition. It aims to strengthen all stages of the European value chain of critical raw materials by diversifying EU imports to reduce strategic dependencies, improving the EU’s ability to monitor and mitigate the risks of disruption to the supply of critical raw materials, and improving circularity and durability. In this sense, the European Commission proposes a new Regulation on Critical Raw Materials to ensure that the European Union has access to a safe and sustainable source of supply of critical raw materials essential for the transition to clean energy. This article highlights the importance of the critical raw materials in the European Union’s pursuit of the Green Deal and the challenges associated with the growing global resource demands.