EU law on critical raw materials

The goals of the CRMA are triple:

1. Guarantee of constant supply of the European Union (EU) industry with important raw materials.
2. Strengthen the resistance of the supply chain.
3. Promote the diversification of procurement and at the same time reduce dependencies.

The following should be achieved with these goals:

1. Secure the competitiveness of the EU industry by facilitating access to raw materials that are of crucial importance for the further development of green technologies.
2. Reduce the susceptibility to disorders in the supply chain, such as those observed during the Covid 19 pandemic and in natural disasters.
3. The threat from economic compulsion, especially from China.

Critical raw materials (CRM) are categorized based on the following criteria:

• Economic importance for the entire EU economy.
• Evaluation of the risk of supply.

Strategic raw materials (SRM), a sub -group of critical raw materials (CRMS), are defined by the following criteria:

• Meaning for the promotion of the green and digital change.
• Relevance for defense and space applications.
• High forecast future demand in relation to the current global production.

The inventory of critical raw materials (CRMS) and strategic raw materials (SRMS), which are relevant for green technologies, is regularly revised by the European Commission:

Reference: General method for declaring the use of critical raw materials in products relevant to energy consumption

Mandatory requirements for companies

1. Companies should not make more than 65 % of their care of strategic raw materials, unproxed and in no processing level, dependent on a single third country
2. Supplier audit: Large companies that use a sub -group of critical raw materials (SRMS) in strategic technologies must undergo mandatory supply chain audits every two years.Examples of such technologies include:

• Energy storage and batteries for electromobility.
• Equipment for hydrogen production and use.
• Devices related to the production of renewable energies.
• Traction engines.
• Heat pumps.
• Data transfer and storage systems.
• Mobile electronic devices.
• Equipment in connection with additive production.
• Robotics.
• Drone.
• Satellites.
• Advanced chips.

The audit must include a stress test of the SRM supply chains in order to evaluate their susceptibility to disorders by evaluating the possible effects of different scenarios.This assessment should take the following into account:

• Locations of SRM extraction, processing or recycling.
• Capacities of the economic actors along the value chain and market structure.
• Factors that affect the offer, such as geopolitical conditions, logistics, energy supply, workers or natural disasters.
• Availability of alternative sources of supply and replacement materials.
• Identification of the users of the relevant SRM in the entire value chain, with special attention to technologies that are relevant for the green and digital change as well as the defense and space industry.

Companies should collect information about the presence of critical raw materials in their products in order to be able to meet their obligations.

At least 10 % of what the EU consumes every year should come from the EU itself.

At least 40 % of the annual EU requirement should be handled within the EU.

At least 15 % of the EU's annual consumption should be covered by recycling materials.

Scope products for special requirements of permanent magnets:

The list of relevant products includes:

• Magnetic resonance imaging devices
• Wind energy generators.
• Industrial robot
• Motor vehicles
• Easy transport
• Cooling generators
• Heat pumps
• Electric motors, including those that are integrated into other products such as automatic washing machines, tumble dryers, microwaves, vacuum cleaners and dishwasher.

Special requirements for permanent magnets:

1. Specifications for companies that bring products with permanent magnets onto the market.
2. Products must be clearly visible with a permanent label on which the following says:
1. Whether the product contains permanent magnets.
2. If magnets are present, enter their type (e.g. neodymium-iron boron, Samarium cobalt, aluminum-nickel cobalt, ferrite).
3. Products should contain a data carrier with a clear identifier that provides the following:
4. Contact details of the company.
5. Weight, position and chemical composition of each permanent magnet, including coatings, adhesives and additives.
6. Instructions for finding and removing permanent magnets, including the required tools or technologies.
7. For products in which magnets are exclusively in embedded electric motors, an exception is granted that replaces detailed magnetic -specific information.
8. Products with digital product passes must contain the required information.
9. The information should refer to the product model or for different units to certain batches or units.
10. Recyclers, market surveillance authorities and customs should access this information.
11. Transitional periods:
1. Three years after the regulation came into force.
2. Five years after the regulation comes into force for certain devices such as magnetic resonance tomographic devices, motor vehicles and light transport vehicles.
3. Electric motors, including those that are integrated into other products such as washing machines, dryers, microwaves, vacuum cleaners and dishwasher.
12. Determination of details on recycled content
13. Companies that introduce products with permanent magnets over 0.2 kg must disclose the proportion of recycled neodymic, dysprosium, praseodym, terbium, boron, samarium, nickel and cobalt.This information should be open to the public.
14. Customers must access this information before buying or contract.

 

Ahmed Sakr

Product compliance consultant

Complymarket UG (limited liability)