Belgium, (Brussels Morning Newspaper) The European Commission is planning to form a central agency for purchasing critical materials including rare-earth elements and lithium.
Draft regulations to be released later this month show that the EC is also planning to force bloc members to remove bureaucratic obstacles that hold back new processing plants and mines, according to Reuters reporting on Tuesday.
The EC stressed that proposed bureaucratic expansion is aimed at ensuring that the EU has access to enough materials needed to meet its environmental targets.
The move is part of broader efforts by the EU and the US to lower their dependence on Chinese imports, which account for roughly 95% of the EU’s rare-earth consumption.
The Commission announced plans to introduce the Critical Raw Materials Act (CRMA) in September last year, noting that new rules would target materials needed to make wind turbines and electric vehicles.
According to the draft CRMA, “it is necessary to take measures to ensure access to a secure and sustainable supply of critical raw materials in order to safeguard the union’s economic resilience and strategic autonomy.”
Proposed rules include setting up the EU Critical Raw Materials Board to coordinate efforts and make sure the bloc can process at least 40% and produce at least 10% of strategic materials needed for the green push.
“Uncoordinated national measures to ensure a secure and sustainable supply of critical raw materials have a high potential of distorting competition and fragmenting the internal market,” the EC noted in the proposal.
Centralised purchasing system
“The Commission shall set up a system… that is able to aggregate the demand of interested union buyers and then negotiates on their behalf with sellers globally,” the body added and stressed that the move would be in line with EU competition rules.
Under proposed rules, the Commission would have the authority to declare some projects as strategic. Strategic mine projects would have to receive all permits in 24 months and strategic processing facility projects in 12 months.
New rules would also require sellers of critical materials to list environmental footprints for their products so that potential buyers can buy less polluting ones if they wish.