On Thursday, the European Commission unveiled a new set of regulations under the Critical Raw Materials Act which aims to reduce its dependence on China. According to Euractiv, the regulations deal with setting targets for the production, refining, and recycling of key raw materials that are needed for green and digital transitions. The move by the International organisation came in light of the year-long rise in the energy cost crisis. During a press conference in Brussels, the EU Commissioners Valdis Dombrovskis and Thierry Breton jointly introduced new regulations. At the press conference, the two EU diplomats assured that through these measures the International body is reducing Europe’s reliance “on imports, often from quasi-monopolistic third country suppliers,” Euractiv reported.
In the Thursday event, the commission announced that it would set a certain amount of voluntary targets for the International body to reach by 2030. Among these targets, the EU Commission decided that one-tenth of Strategic Raw Materials (SRMs) will need to be extracted within the European Union. Through these measures, the EU made it clear that it is trying to be more self-reliant. However, the International body will not stay in complete isolation. The Act set out to create long-lasting ties with International partners. The EU diplomats assured that they will work with ‘like-minded’ partners in an effort to expand its own industry.
During the press conference, the EU diplomat made it clear that the international body is trying to reduce its dependence on any third country. “Excessive dependencies on single suppliers could disrupt entire supply chains, particularly as export restrictions and other trade-restrictive measures are increasingly used amid intensifying global competition,” the Commission stated as per the report by Euractiv. Currently, China holds a large number of Raw materials including magnesium and rare earth materials. According to Euractiv, the Commission is eying to target a maximum of 65% of imports of any one strategic metal into the EU from a single country. The figure decreased from 70% in the past.