Metal producers and consumers in EU advocate for increased investment in critical minerals processing

One sentence summary – Metal producers and consumers in the EU are urging increased investment in expanding processing capacity for critical minerals, which are crucial for the energy transition and electric vehicles, and have requested the inclusion of critical minerals in the EU Innovation Fund to address China’s dominance in cleantech manufacturing and critical minerals processing, while also criticizing the EU’s Strategic Technologies for Europe Platform for its insufficient focus on critical minerals and emphasizing the need for new and targeted support to scale critical minerals operations.

At a glance

• Metal producers and consumers in the EU are advocating for increased investment in expanding processing capacity for critical minerals.
• These minerals are essential for the energy transition, particularly for electric vehicles.
• Industry association Eurometaux has requested the inclusion of critical minerals in the EU Innovation Fund.
• China currently holds significant control over cleantech manufacturing and possesses processing capacity for 50-90% of critical minerals.
• Prominent companies such as Rio Tinto, Norsk Hydro, Albemarle, Umicore, Northvolt, Solvay, and Aurubis have signed a letter emphasizing the importance of addressing this issue.

The details

Metal producers and consumers within the European Union (EU) are advocating for increased investment in expanding processing capacity for critical minerals.

These minerals are essential for the energy transition, particularly for electric vehicles.

In a letter to EU Commission President Ursula von der Leyen, industry association Eurometaux has made this appeal.

The association has requested the inclusion of critical minerals in the EU Innovation Fund.

This fund is primarily focused on decarbonization efforts.

Eurometaux has highlighted that China currently holds significant control over cleantech manufacturing.

China also possesses processing capacity for 50-90% of critical minerals.

Meanwhile, the United States is rapidly catching up through its investment package.

The ongoing conflict in Ukraine has further complicated Europe’s investment climate.

The letter is signed by prominent companies such as Rio Tinto, Norsk Hydro, Albemarle, Umicore, Northvolt, Solvay, and Aurubis.

These companies underscore the importance of addressing this issue.

Eurometaux suggests that the EU Innovation Fund could support critical minerals processing.

This could be achieved by adopting a similar model to the EU’s Hydrogen Bank.

The Hydrogen Bank assists in bridging cost differences between renewable hydrogen and fossil fuels.

Criticism was also directed towards the EU’s Strategic Technologies for Europe Platform.

This platform was deemed insufficient and lacking focus on the critical minerals value chain.

In response to this, Eurometaux emphasized the need for new, long-term, and targeted support.

This support would facilitate the scaling of conversion, processing, and refining operations for critical minerals.

This comprehensive brief outlines the concerns raised by metal producers and consumers within the EU.

It underscores the importance of addressing China’s dominance in cleantech manufacturing and critical minerals processing.

It also acknowledges the United States’ efforts to catch up.

The brief highlights the impact of the ongoing Ukraine conflict on Europe’s investment climate.

It emphasizes the letter signed by prominent companies in the industry.

It suggests potential solutions, such as replicating the model of the EU’s Hydrogen Bank.

It criticizes the EU’s Strategic Technologies for Europe Platform for its inadequate focus on critical minerals.

Finally, it stresses the urgent need for new and targeted support to enable the scaling of critical minerals operations.

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