MINEX Forum

Tag: EU

  • Transforming Raw Materials into Strategic Strength: EIT Raw Materials Advocates for Bold Action in FP10

    Transforming Raw Materials into Strategic Strength: EIT Raw Materials Advocates for Bold Action in FP10

    Berlin, Germany – EIT RawMaterials, a leading knowledge and innovation community, has issued a compelling call for Europe to transform its raw materials sector into a cornerstone of strategic strength. The organisation has outlined key recommendations for the upcoming Framework Programme 10 (FP10), urging the European Union to invest €4 billion to secure its raw materials future.

    The Challenge: Dependency on Imports

    Europe’s heavy reliance on imported critical and strategic raw materials (CRMs and SRMs) poses significant risks to its green and digital transformation goals. With nearly 100% dependence on external sources for key materials like lithium, magnesium, and rare earth elements, the EU is vulnerable to global supply chain disruptions.

    The Solution: Innovation and Resilience

    EIT RawMaterials proposes a multifaceted strategy to reduce dependency and build resilience:

    • Domestic Production: Increase mining to supply 10% of Europe’s CRM needs.
    • Advanced Processing: Expand processing capacity to 40%.
    • Circular Economy: Reclaim 25% of CRMs through recycling.
    • Global Diversification: Limit reliance on single-country sources to 65%.

    Strategic Investments

    To meet these ambitious targets, the organisation recommends focusing on:

    1. Disruptive Technologies: Develop cutting-edge solutions like Direct Lithium Extraction and advanced recycling.
    2. Circular Economy: Scale up industrial symbiosis and recycling initiatives to retain valuable materials.
    3. Public-Private Partnerships: Allocate €1 billion to foster collaboration between industry and academia.
    4. Workforce Development: Train 1.2 million workers by 2030 to address the sector’s growing demands.

    A Sustainable Future

    EIT RawMaterials emphasizes the transformative potential of the raw materials sector, predicting a €2 trillion economic impact and the creation of 32 million jobs by 2030. Their initiatives also align with the EU’s Critical Raw Materials Act, which sets ambitious targets for mining, processing, and recycling by the end of the decade.

    Leading Innovation

    Since its inception, EIT RawMaterials has mobilized €600 million in funding and unlocked €3.6 billion for research and innovation. Its initiatives have fostered a thriving ecosystem of over 300 partners and 750 alliance members, driving sustainable solutions and workforce development across Europe.

    “The time to act is now,” said a spokesperson from EIT RawMaterials. “With bold investments and strategic collaborations, Europe can secure its industrial competitiveness, lead the global green transition, and build a resilient future.”

  • EU and US Welcome New Members to the Minerals Security Partnership (MSP)

    EU and US Welcome New Members to the Minerals Security Partnership (MSP)

    The European Commission and the United States have officially welcomed seven new countries to the Minerals Security Partnership (MSP) Forum during an event held in New York City. The gathering, which took place on the sidelines of the United Nations General Assembly High-Level Week and Climate Week NYC, saw the inclusion of the Democratic Republic of the Congo, the Dominican Republic, Ecuador, the Philippines, Serbia, Türkiye, and Zambia as new members. These nations join an existing group of members, including Argentina, Greenland, Kazakhstan, Mexico, Namibia, Peru, Ukraine, and Uzbekistan, who were introduced at the inaugural MSP Forum in July 2024.

    The MSP Forum, co-chaired by Maive Rute, European Commission Deputy Director-General for Internal Market, and Jose W. Fernandez, U.S. Under-Secretary of State for Economic Growth, Energy, and the Environment, provided a platform for discussions on the responsible mining, processing, and recycling of critical minerals. These materials are essential for sectors such as energy transition and other key strategic industries. Ministers and high-level officials from across the partnership discussed key opportunities, challenges, and priorities related to the critical mineral sector, with a focus on project development, environmental, labour, and social governance aspects.

    The newly added members expressed their interests in further developing their critical mineral sectors, emphasizing the need for investment in local value addition and environmentally sustainable mining practices. The group also discussed the MSP Forum’s roadmap, which includes two primary workstreams on project development and policy dialogue.

    Looking ahead, the European Commission and the U.S. plan to host the next MSP Forum event during Raw Materials Week in Brussels in December 2024.

  • Serbia Launches the Lithium-Turbo Project in Partnership with the EU

    Serbia Launches the Lithium-Turbo Project in Partnership with the EU

    Serbia has embarked on the Lithium-Turbo project, capitalizing on its rich lithium reserves. The initiative marks a significant step in Serbia’s growing economic ties with the European Union, facilitated by a new raw material agreement. This partnership aims to exploit the lithium deposits in the Serbian Jadar Valley, potentially making Serbia the first European country to manage the entire value chain from mining to electric vehicle production. Michael Harms, Managing Director at the Eastern Committee of German Business, highlighted the geopolitical importance of the deal, noting that it diminishes China’s role in the region. The EU stands to benefit from reduced dependence on Chinese lithium and shorter transport routes. However, the project is not without political complications, as Serbia continues to maintain complex relationships with Russia, China, and the EU. Additionally, domestic opposition persists, with Serbian environmental activists expressing concerns over potential impacts on arable land and groundwater.

  • EU and Serbia Sign Agreement to Boost Lithium Supply Chain Development

    EU and Serbia Sign Agreement to Boost Lithium Supply Chain Development

    The European Union has signed a pivotal agreement with Serbia to promote the development of lithium supply chains, marking a significant step in the EU’s strategy to build raw material partnerships and reduce reliance on fossil fuels. This agreement grants the EU access to raw materials mined in Serbia, aiming to enhance the production of sustainable raw materials, battery manufacturing, and electric mobility. A roadmap is set to be developed by the end of the year to foster research and training in lithium technology.

    The deal has stirred controversy in Serbia, where debates over the rights to lithium mining and its environmental impact have been intense. In 2022, protests halted the mining activities of Rio Tinto, a company that had been developing what is now recognized as Europe’s largest lithium mine in the Jadar region. However, the ban was recently overturned as unconstitutional, allowing Rio Tinto to resume operations under a renewed commitment to meet strict environmental standards.

     

  • EU Urged to Establish Independent Pricing for Critical Minerals

    EU Urged to Establish Independent Pricing for Critical Minerals

    The head of an EU-funded group has called for a European system to set prices for critical minerals essential for the energy transition, independent of China’s influence. Bernd Schaefer, CEO of EIT RawMaterials, emphasized the need for a pricing mechanism that reflects the supply and demand within Europe, rather than being susceptible to China’s market decisions.

    Western start-ups are struggling with oversupply and weak prices of materials like lithium, cobalt, and rare earths, which are impacting their cash flows and ability to compete with China. “Europe should have a critical materials platform that has a price-building mechanism that reflects the supply and demand situation in Europe,” Schaefer told Reuters at the World Materials Forum in Paris.

    Schaefer also advocated for the creation of an exploration fund to enhance the mining of critical minerals in Europe, suggesting a substantial investment, “This should not be just a couple of million (euros), it should be a billion, it must be a big number.”

    EIT RawMaterials, an alliance of over 300 companies and academics, is instrumental in executing the EU plan to secure raw materials necessary to achieve net zero greenhouse gas emissions by 2050. The EU Critical Raw Materials Act, effective since May, sets ambitious targets for the mining, recycling, and processing of minerals like lithium and copper by 2030.

    Schaefer warned that political uncertainty could hinder progress towards these targets, citing recent elections in France, the European Parliament, and instability in Germany. “This discussion is in limbo. We are in a period of transition within the Commission and within Europe,” he noted. “We might be losing time, but we cannot afford to lose time.”

    As a neutral, non-political entity, EIT RawMaterials could play a pivotal role in driving the necessary changes, Schaefer added.

  • China Introduces New Regulations to Protect Rare Earth Supplies

    China Introduces New Regulations to Protect Rare Earth Supplies

    China has announced a series of new rare earth regulations aimed at securing its supplies for national security purposes. These regulations, issued by the State Council on Saturday, encompass rules on the mining, smelting, and trade of critical materials essential for products ranging from electric vehicle magnets to consumer electronics.

    According to the regulations, rare earth resources are state-owned, and the government will oversee the industry’s development. China, the world’s leading producer of rare earths, accounts for nearly 90% of global refined output. The new rules, effective from October 1, mandate the establishment of a rare earth product traceability information system. Enterprises involved in mining, smelting, separation, and export of rare earth products must maintain accurate records of product flow and enter this data into the traceability system.

    This move follows China’s introduction last year of export restrictions on germanium and gallium, crucial for the chip-making sector, citing national security concerns. Additionally, China banned the export of technology for making rare earth magnets and the extraction and separation of rare earths. These actions have raised concerns about potential supply restrictions escalating tensions with the West, particularly the United States, which accuses China of economic coercion—a claim Beijing denies.

    The regulations come at a time when the EU is set to impose provisional tariffs on Chinese electric vehicles on July 4, citing unfair state subsidies. Both sides have indicated plans for talks regarding the proposed tariffs. The EU has ambitious 2030 targets for domestic production of minerals vital for the green transition, especially rare earths, anticipating a sixfold increase in demand by 2030 and a sevenfold increase by 2050.

  • EU Requests Profit-Based Backstop for Germany’s €1.75 Billion Coal Shutdown Payout

    EU Requests Profit-Based Backstop for Germany’s €1.75 Billion Coal Shutdown Payout

    The EU is urging Germany to include a profit-based backstop in its €1.75 billion ($1.9017 billion) payout for the early shutdown of the operations of its second-largest coal miner. A state payment of up to €1.2 billion to an entity of Czech billionaire Daniel Kretinsky’s EPH Group AG has been preliminarily approved by the European Commission, according to Germany’s economy ministry. The remainder of the payout will depend on the future profitability of the assets.

    The approved sum, as reported by Bloomberg on May 31, is intended to cover costs for mine rehabilitations, closures, and the impact on jobs. To prevent overcompensation, Lausitz Energie Bergbau AG (LEAG) will be required to provide proof of future costs and will be compensated from the remaining sum of €550 million, according to a letter from the EU’s Competition Commissioner Margrethe Vestager.

    Germany is working to accelerate the phaseout of coal in its power generation mix after failing to meet its emissions reduction targets. In 2020, the government agreed to pay billions of euros in compensation to LEAG and RWE AG to shut down coal-fired power plants by 2038. Now, to cut carbon emissions faster, the state is negotiating to advance the coal exit by eight years.

    In 2022, RWE agreed to a 2030 phaseout and will receive €2.6 billion in state payments. LEAG is still negotiating, aiming to continue burning coal beyond the end of the decade. Fossil fuel plants have to pay for carbon permits, and rising costs could squeeze coal profits. The backstop measure is designed to address this—if LEAG shuts down plants early due to unprofitability, the subsidy would be reduced. LEAG maintains that coal will remain profitable until 2038, the current legal exit date.

    “This is a bet on the future,” economy minister Robert Habeck said at a press conference in Berlin, noting the difficulty in calculating foregone profits for 2038. The European Commission still needs to give its final decision on the payment.

  • Resistance to EU Coal Phase-Out Evident in Bulgarian Mining Village

    Resistance to EU Coal Phase-Out Evident in Bulgarian Mining Village

    In Beli Bryag, a Bulgarian mining village already displaced for an open-pit mine, opposition to the European Union’s coal phase-out is palpable. Despite significant community displacement to make room for the mine’s expansion, Bulgaria’s commitment to exit coal by 2040 aligns with EU aims for carbon neutrality by midcentury. However, for residents like Beli Bryag Mayor Ivelina Dimcheva, the situation is dire, especially with uncertainty looming over the mine’s longevity. The resistance to the Green Deal underscores broader concerns in coal-dependent Bulgaria ahead of both European parliamentary and national elections. Stanimir Georgiev, a veteran miner, voices discontent, organizing protests against what he perceives as a threat to livelihoods posed by the EU’s environmental policies.

  • EU and Australia Nearing Strategic Partnership on Raw Materials for Green and Digital Transitions

    EU and Australia Nearing Strategic Partnership on Raw Materials for Green and Digital Transitions

    The European Union (EU) and Australia are on the brink of forging a strategic partnership aimed at securing the essential raw materials crucial for their respective green and digital transitions. According to a spokesperson from the European Commission, negotiations have been underway for a memorandum of understanding (MoU) that will lay the groundwork for this partnership. Commission spokesperson Johanna Bernsel disclosed to POLITICO on Monday that they anticipate signing this pivotal agreement as early as May. Sources close to the discussions revealed that both parties have reached a substantial consensus on the content of the MoU, which is nearing its final form. An official, speaking on condition of anonymity due to the confidential nature of the talks, suggested that the announcement of the deal could be expected in the upcoming weeks or months.

  • Euro Manganese’s Chvaletice Project Positioned to Support EU’s Critical Raw Materials Act

    Euro Manganese’s Chvaletice Project Positioned to Support EU’s Critical Raw Materials Act

    Euro Manganese Inc. issued follow-up remarks today regarding the European Commission’s recently approved Critical Raw Materials Act (CRMA), aimed at ensuring a sustainable supply of essential materials for the energy transition. With the Council of the EU granting final endorsement to the CRMA, Euro Manganese’s Chvaletice Manganese Project in the Czech Republic emerges as a pivotal asset, poised to become the sole European source of high-purity manganese crucial for the battery supply chain. The Act, officially adopted on March 18, 2024, identifies high-purity manganese as a strategic raw material vital for Europe’s decarbonization objectives and defense applications, while also designating manganese as a critical raw material due to its economic importance and supply risk. Dr. Matthew James, President & CEO of Euro Manganese, hailed the EU’s approval of the CRMA as a significant step towards securing critical materials for the energy transition, underscoring the potential of the Chvaletice Project to address these needs.