The European Critical Raw Materials Act presented by the EC recognizes that the recycling industry will be critical to securing the supply chain in the green and digital transitions. The document acknowledges that the EU is currently dependent on other countries for the import of a number of critical raw materials. This is particularly the case with China, from where the EU imports 93% of its magnesium and 86% of its rare earth metals. For this reason, it is intended to establish a benchmark of no dependence on a single third country for more than 70% of imports of any strategic raw material by 2030.
This draft regulation considers the recycling industry decisive to ensure that at least 40% of the annual consumption of critical raw materials (CRM) comes from transformation processes carried out in the European Union. This will help to secure the supply chain in the ecological and digital transitions, as well as other strategic sectors such as renewable energy and defense.
The regulation also states that 10% of the consumption of strategic raw materials should be extracted in the EU and that, to ensure circularity and security of supply, the European recycling industry should be able to produce at least 15% of the EU’s annual consumption of each strategic raw material.
Once again, the recycling sector is a key link in the delocalization of supply from third countries and Europe’s independence, since its activity guarantees access to strategic raw materials that are part of many of the waste products, such as WEEE: appliances and products such as microwaves, dishwashers or magnetic resonance equipment, when they become waste at the end of their useful life. A clear example of this are permanent magnets, especially neodymium magnets, which are key to electric traction motors.
Therefore, national circular economy measures include: increasing the collection of waste from products and components containing relevant quantities of CRM; promoting reuse and increasing the preparation for reuse of waste and components containing CRM; increasing the use of secondary CRM in manufacturing by taking into account recycled content in award criteria related to public procurement and relevant products; and increasing the technological maturity of CRM recycling technologies and promoting the substitution of CRM.
This document shows that the recycling industry is and will be essential to ensure the supply and availability of critical raw materials in Europe. Therefore, it is very likely that we will see an increase in acquisitions and mergers in the Spanish and international recycling market in order to adapt to this trend.
