Critical Raw Materials Act CRMA

Safeguards security and diversification of strategic raw material supply

Reference: Regulation (EU) 2024/1252
Key date: 2024
Applies to: Companies extracting, processing and importing critical raw materials

Who the regulation applies to

This regulation applies to:

Critical raw materials value chain undertakings: engaged in the exploration, extraction, processing and recycling of critical/strategic raw materials
‘Large undertakings’ using strategic raw materials to manufacture batteries, hydrogen, renewable technologies, aircraft, traction motors, heat pumps, data transmission/storage, mobile electronics, additive manufacturing, robots, drones, rocket launchers, satellites and advanced chips (condition: more than 500 average employees and global net turnover exceeding EUR 150 000 000 in the preceding financial year)
EU undertakings intending to participate in demand aggregation and joint purchasing of strategic raw materials
Member States and the European Commission: responsible for the 2030 benchmarks, strategic projects and supply chain monitoring/stress testing
2030 benchmarks: extraction ≥10%, processing ≥40% and recycling ≥25% of the EU's annual consumption; the share of any strategic raw material from a single third country ≤65%
(Not applicable) General use by non-large undertakings (except voluntary participation in demand aggregation/joint purchasing)

This Regulation does not contain a single provision defining its overall scope; its addressees are mainly set out in Article 1 (objectives) and the obligation provisions in the chapters of the operative text, such as Article 24 on specific ‘large undertakings’ using strategic raw materials.

The following provisions define its scope:

Article 1 — Subject matter and objectives

1. The general objective of this Regulation is to improve the functioning of the internal market by establishing a framework to ensure the Union’s access to a secure, resilient and sustainable supply of critical raw materials, including by fostering efficiency and circularity throughout the value chain. 2. To achieve the general objective referred to in paragraph 1, this Regulation lays down measures aiming to: (a) lower the risk of supply disruptions related to critical raw materials likely to distort competition and fragment the internal market, in particular by identifying and supporting strategic projects that contribute to lowering dependencies and diversifying imports and by undertaking efforts to incentivise technological progress and resource efficiency in order to moderate the expected increase in the Union consumption of critical raw materials; (b) improve the Union’s ability to monitor and mitigate the supply risk related to critical raw materials; (c) ensure the free movement of critical raw materials and products containing critical raw materials placed on the Union market while ensuring a high level of environmental protection and sustainability, including by improving their circularity.

Article 2, point (29) — Definitions ('large company')

‘large company’ means a company with more than 500 employees on average and a net worldwide turnover of more than EUR 150 million in the most recent financial year for which annual financial statements have been prepared;

Article 24 — Company risk preparedness

1. By 24 May 2025 and within 12 months of each update of the list of strategic raw materials pursuant to Article 3(3), Member States shall identify the large companies operating on their territory that use strategic raw materials to manufacture batteries for energy storage and e-mobility, equipment related to hydrogen production and utilisation, equipment related to renewable energy generation, aircrafts, traction motors, heat pumps, equipment related to data transmission and storage, mobile electronic devices, equipment related to additive manufacturing, equipment related to robotics, drones, rocket launchers, satellites or advanced chips. 2. Large companies as referred to in paragraph 1 shall, at least every three years and to the extent the required information is available to them, carry out a risk assessment of their raw materials supply chain of strategic raw materials, including: (a) a mapping of where the strategic raw materials they use are extracted, processed or recycled; (b) an analysis of the factors that might affect their supply of strategic raw materials; (c) an assessment of their vulnerabilities to supply disruptions.

What the regulation requires

Duty	Trigger	Evidence	Timing
Due diligence and certification in critical raw material supply chains Carry out risk management and certification for critical raw material supply chains.	Companies using/processing critical raw materials	Supply chain audits, certification evidence	Phased after 2024/1252 enters into force

Key provisions

Article 1(1) — general objective

The general objective of this Regulation is to improve the functioning of the internal market by establishing a framework to ensure the Union’s access to a secure, resilient and sustainable supply of critical raw materials, including by fostering efficiency and circularity throughout the value chain.

Article 5(1) — capacity benchmarks and diversification by 2030

The Commission and Member States shall strengthen the different stages of the strategic raw materials value chain through the measures provided for in this Chapter in order to: (a) ensure that, by 2030, Union capacities for each strategic raw material have significantly increased so that, overall, Union capacity approaches or reaches the following benchmarks: (i) Union extraction capacity is capable of extracting the ores, minerals or concentrates needed to produce at least 10 % of the Union’s annual consumption of strategic raw materials ...; (ii) Union processing capacity ... at least 40 % of the Union’s annual consumption ...; (iii) Union recycling capacity ... at least 25 % of the Union’s annual consumption ...; (b) diversify the Union’s imports ... so that, by 2030 ... no third country accounts for more than 65 % of the Union’s annual consumption of such a strategic raw material.

Article 28(1) — labelling of products incorporating permanent magnets

From two years after the date of entry into force of the implementing act referred to in paragraph 2, any natural or legal person that places on the market magnetic resonance imaging devices, wind energy generators, industrial robots, motor vehicles, light means of transport, cooling generators, heat pumps, electric motors ... shall ensure that those products bear a conspicuous, clearly legible and indelible label indicating: (a) whether those products incorporate one or more permanent magnets; (b) if the product incorporates one or more permanent magnets, whether those permanent magnets belong to any of the following types: (i) neodymium-iron-boron; (ii) samarium-cobalt; (iii) aluminium-nickel-cobalt; (iv) ferrite.

Article 29(1) — recycled content disclosure for permanent magnets

By 24 May 2027 or two years from the entry into force of the delegated act referred to in paragraph 2, whichever is later, any natural or legal person that places on the market products referred to in Article 28(1) which incorporate one or more permanent magnets referred to in Article 28(1), point (b), (i), (ii) and (iii), and for which the total weight of all such permanent magnets exceeds 0,2 kg shall make publicly available on a free-access website the share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from post-consumer waste present in the permanent magnets incorporated in the product.

Critical Raw Materials Act CRMA

Who the regulation applies to

What the regulation requires

Key provisions

Industry dossiers covering this regulation

Related regulations

Official text