Fraunhofer Institute for Systems and Innovation Research ISI
Fraunhofer Institute for Systems and Innovation Research ISI

Project

STOA

The role of R&I in ensuring a safe and sustainable supply of critical raw materials in the EU

Raw materials are so deeply intertwined with human history that they became name-givers to ancient time periods such as the stone and iron ages. Furthermore, raw materials are as necessary today as they were then: While European prosperity is based, among other things, on knowledge, much of that knowledge is about making useful things and these useful things are made of raw materials. In particular, the green and digital transitions are materials-intensive and will drive de-mand for many raw materials for the years to come.

 

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Critical raw materials (CRM) are necessary for a robust EU economy but are also diverse in their nature and the challenges they pose. Methodologies are in place to assess and monitor risks and possible impacts of supply disruptions. Despite challenges regarding access to timely, high-quality data, these methodologies address both the status quo (CRM) and future developments (strategic raw materials, SRM) regarding supply and demand for raw materials. The outcome of CRM assessments has changed over time due to changing supply and demand realities. This will continue to be the case also in the assessment of SRM. These assessments and the accompanying background work provide a view of the entire supply chain for critical raw materials, which is necessary for the development of actions to minimize supply risks and increase resilience.

The EU has tackled the issue of raw material criticality with a variety of actions, including strong engagement in research and innovation (R&I) for CRM. The role of R&I is stressed in policy documents, from the Raw Materials Initiative already in 2008 to the recent Critical Raw Materials Act. In parallel with this political attention, funding has increased significantly in EU programs, including the past Framework Programmes and the current Horizon Europe, and EIT RawMaterials that is reaching the end of its funding period. The EU is an important actor in patenting, especially regarding mining/processing and recycling, with strong international ties (especially to USA). Continued funding and policy support will be key to maintaining and profiting from this position.

 

 

The goal of this study was twofold:

1.     To illuminate the role of R&I and

2.     To provide policy options

for strengthening the contribution of R&I to a safe and sustainable supply of raw materials in the EU.

To achieve this, the report starts by providing background (both methods and data) into critical raw materials and their assessment in the EU since the mid-2000s. A focus of this part of the study is in providing an overview of supply and use across all critical raw materials, as well as actions commonly pursued to secure supply or mitigate the adverse effects of possible supply disruptions. This is accompanied by an overview of EU policies affecting CRMs – from the Raw Materials Initiative (RMI) to the Critical Raw Materials Act (CRMA). In addition, the report provides an overview of sustainability issues and public controversy around mining and processing of raw materials as these are key in the development of concrete raw materials projects and therefore central to the implementation of the Critical Raw Materials Act.

The main part of the report focuses on a review of R&I and cooperation in securing supply of raw materials for the EU. Here, we use a simplified value chain – stretching from exploration of mineral resources to recycling of post-consumer scrap – to highlight the importance of R&I and the diversity of themes covered in the current research landscape, using specific examples from a review of current funding schemes and projects, and paying special attention to sustainability aspects. This view of research is complemented by a quantitative analysis of patenting along the CRM value chain, placing the EU in the international context and analysing relative strengths and weaknesses. Finally, this part illuminates international cooperation in the field of raw materials through a quantitative analysis of co-patenting activity as well as a qualitative analysis of raw materials diplomacy, including strategic partnerships and established forums for international cooperation.

The above provides the basis for a set of policy options in the areas of (1) EU institutional and R&I capacities, (2) international collaboration, and (3) legitimacy and regulation. Each option is examined qualitatively along the dimensions costs, benefits, feasibility, effectiveness, sustainability, risks and uncertainties, coherence with EU objectives, regulatory impacts, and social and ethical impacts.

 

Duration

December 2023 - June 2024

Clients

  • STOA Panel of the EU Parliament

Partners

  • Fraunhofer ISI (lead), Austrian Academy of Sciences, NORSUS, Karlsruhe Institute of Technology