Reducing dependence on China
With the new ‘European Critical Raw Materials Act’, the European Commission proposes to mine more ‘critical’ raw materials for the energy transition in Europe. In this way, the EU wants to become less dependent on China, which invested heavily in countries where the extraction of raw materials such as cobalt and lithium – important for making battery packs – now mainly takes place.
“Raw raw materials are essential for the energy transition,” says Commission President Ursula von der Leyen, so the EU must secure their supply. To do that, according to policymakers, it is very important that Europe is not too dependent on China. The EU will never become completely self-sufficient (the Commission also sees this), but part of the raw materials required for the energy transition can also be obtained from European soil.
That is why the European Commission proposed new targets on Thursday: 10 percent of raw materials must come from our own soil, 15 percent from recycling, and 40 percent of the processing of used raw materials must take place within the EU. In addition, no more than 65 percent of the amount used per type of raw material may come from a single other country. In other words: make sure that you are not too dependent on a single other country for (processed) raw materials from outside. The goals must be achieved from 2030.
Provided they are approved, at least. The NOS notes that not every party is equally convinced of the positive consequences. The ‘cons’ have to do with the local social and environmental consequences of mining, the ‘pros’ are pleased that there is an eye for less dependence on the raw materials of countries that are not necessarily friendly. This is because the proposal pays more attention to the origin of raw materials: the materials that do come from outside the EU must be purchased as much as possible from ‘like-minded’ countries.
Volkswagen invests in mining
Almost simultaneously with the publication of the new plans in the European Commission, Reuters announces that Volkswagen also intends to invest in mining. With PowerCo, the brand wants to become one of the largest battery cell products in the world. To be able to reduce its own battery costs and to supply to other brands. It is still unclear in which countries Volkswagen is considering investing in mining, but according to Reuters, the choice fits in with a trend: more and more manufacturers want to secure access to scarce raw materials, where there was previously more reliance on the raw materials sector itself.
Volkswagen is reportedly already in talks with mining companies in Canada. A ‘like-minded’ country, but not a European one. Whether Volkswagen is also considering mining in Europe, Thomas Schmall (board member of Volkswagen Group) did not want to disclose.
– Thanks for information from Autoweek.nl