EU Agrees on Critical Raw Materials Act to Reduce Reliance on China

Negotiators Strike Deal to Boost Domestic Supply

Brussels, November 13 (Reuters) -

European Union (EU) governments and lawmakers have reached an agreement on a new Critical Raw Materials Act, aiming to strengthen the bloc's capacities in securing critical raw materials throughout the supply chain. This move is part of the EU's broader strategy to reduce reliance on China for these essential resources. The Act establishes targets for domestic production and sourcing of critical raw materials, necessary for industries such as renewable energy, defense, and digital technologies. It also addresses issues related to the sustainable sourcing of these materials, reducing environmental impacts and promoting responsible mining practices. The agreement highlights the EU's growing concerns over its dependency on China for critical raw materials, which has been exacerbated by global supply chain disruptions and geopolitical tensions. The Act aims to create a more resilient and secure supply chain within the EU, ensuring access to these vital resources for its industries and economies.