Amendments to the Critical Raw Materials Act
The Committee on Industry, Research and Energy adopted the report by Mohammed CHAHIM (S&D, NL) on the proposal for a regulation of the European Parliament and of the Council amending regulation (EU) 2024/1252.
As a reminder, the proposal introduces targeted amendments to Regulation (EC) No 2024/1252 to streamline, clarify and simplify some of the rules to improve circularity, to increase recycling capacity and to strengthen the secondary market for critical raw materials. It includes changes to the implementation plans for Member States, by removing the obligation for Member States to identify large companies and transferring this obligation to the Commission.
The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:
Demand for project recognition
Applications for recognition of a project in the critical raw materials sector as a strategic project must be submitted to the Commission by the project promoter. The Commission must assess applications through an open call for proposals with regular deadlines. The first cut-off date is set for no later than 24 August 2024. The Commission should set cut-off dates at least twice a year.
The Commission may also open additional calls for applications for targeted projects addressing specific missing links, bottlenecks or critical needs identified in strategic raw materials value chains taking into account the whole value-chain approach and their contribution to programme objectives, where appropriate.
Business risk preparedness
The Commission, in close cooperation with Member States, should identify, within two months of the entry into force of the regulation and then within six months after each update of the list of strategic raw materials, the large companies operating in the Union that use strategic raw materials to manufacture strategic products (batteries, equipment related to hydrogen production and related to renewable energy generation, aircrafts, traction motors, heat pumps, mobile electronic devices, robotics, drones, radar, satellites or advanced chips).
It may also, by delegated acts, expand this list of product categories according to the development of the geopolitical and economic situation.
The Commission should inform the large companies it has identified of such identification and of their obligations and should provide guidance regarding compliance with those obligations, including by providing relevant information to the Member States in which the company operates to facilitate compliance.
Within nine months of notification by the Commission of their census and at least every three years thereafter, and to the extent that the requested information is in their possession, large companies shall carry out a risk assessment of their strategic raw materials supply chain, which should include, inter alia: (a) a mapping of the countries in which the strategic raw materials they use are extracted, processed or recycled; (b) a mapping of the ownership of the facilities in which the strategic raw materials they use are extracted, processed or recycled.
If significant vulnerabilities to supply disruptions are detected, large companies should take measures to mitigate those vulnerabilities, including by reducing the use of strategic raw materials, by improving material and resource efficiency, diversifying its strategic raw materials supply chains, or by building up or maintaining of stocks.
If disclosure of some specific elements to the Commission would jeopardise essential security or defence interests of the Member State, it may withhold those specific elements of that information, by informing the Commission of its decision and stating the reasons.
In addition, the Commission is empowered to adopt a delegated act specifying the risk mitigation measures to be implemented, taking into account the available information on supply risks, demand and supply, price volatility, the trade flows and strategic partnerships, bilateral agreements, and projects, including related Global Gateway investment projects between the Union and third countries.
Joint purchases
Suppliers of strategic raw materials will be excluded from the joint purchasing system if they are established or controlled by third countries holding more than 40% of global manufacturing capacity, unless they come from countries linked to the Union by a free trade agreement, a customs union or a strategic partnership.
In the event of a supply crisis, a sudden rise in prices or the setting of artificially low prices threatening the economic viability of extraction, processing or recycling projects established in the Union, the Commission may adopt temporary support measures, such as price stabilisation mechanisms, financial aid, production incentives or demand aggregation measures.
Where no other viable supplier exists, the Commission may temporarily authorize the participation of suppliers normally excluded. This derogation must be justified, proportionate, regularly reviewed, and accompanied by a search for new sources of supply.
Recyclability of permanent magnets
Two years after the entry into force of an implementing act, natural or legal persons who place on the market, including by means of online sales or any other means of distance selling, certain categories of products (MRI devices, wind energy generators, electric motors, household appliances, drones, etc.) will have to affix a marking or a digital label indicating the required information on the integrated permanent magnets.