(Tiper Stock Exchange) – The countries of the European Union show a dependence on imports of critical raw materials (Lithium, Cobalt, Bauxite, Rare Earths) above 80%, as well as an often marginal role in the value chains of the technologies that use them. It is one of the aspects on which the analysts’ brief focuses CDP dto the title “Ecological and digital transition: the point on critical raw materials” according to which European industry risks, therefore, of failing to excel in strategic supply chains for the ecological and digital transition, but also to undermine the ability to achieve the sustainable, inclusive and long-lasting development goals underpinning the Green Deal and Digital Compass. However, there are some activities which, if implemented, could help a lot in mitigating procurement risks.
Lithium, Cobalt, Bauxite, Rare Earths – it is explained – are some of the critical raw materials that play a fundamental role for the ecological transition, being crucial in the production, for example of photovoltaic panels, batteries, wind turbines.
The document illustrates its growing importance – a topic already partially addressed in an analysis published last year – for many strategic technologies in the sectors of renewable energies, electric mobility, defense and aerospace and presents the possible areas of intervention for Europe and for Italy in the perspective of the strategic autonomy essential for the ecological and digital transition.
In a scenario consistent with climate neutrality, the study by CDP analysts reports, by way of example, that according to the estimates of the European Commission, by 2050 the annual demand for lithium by the EU could increase by 56 times compared to current levels, that of cobalt by 15, while for rare earths it could increase tenfold.
In the current context of fragility of international balances the EU rIt is therefore exposed to potential interruptions in the supply of critical raw materials due to limited internal production and dependence on supplies from countries characterized by high geopolitical risk.
The theme is at the center of the European debate and should lead, in the month of March, tothe enactment of the European Critical Raw Materials Act, focused on diversifying sourcing and promoting circularity. Also in Italy, just in recent days, the “National Table for Critical Matters” was activated, promoted in the new format by the Ministry of Enterprise and Made in Italy and by the Ministry of the Environment and Energy Security, with all the public actors and private.
The circular economy, continues the CDP brief, can make an important contribution to mitigating the mismatch between supply and demand. By 2040, through the recycling of used batteries, the EU could satisfy more than half of the demand for lithium (52%) and cobalt (58%) activated by electric mobility. In particular, the recycling of disused technological products, which is growing rapidly and with a high concentration of critical raw materials, offers interesting potential, as does that of extractive waste, stored in large quantities in Italy and a possible alternative source of secondary raw materials.
Recycling by itself is not, however, sufficient to ensure the strategic autonomy of the EU. Additional activities functional to the procurement risk mitigation strategy are necessary: investments in technologies, skills and competences to manage the life cycle of critical raw materials within the EU borders, increasing the resilience of industrial ecosystems; revival of mining activities in a sustainable way on the community territory; strategic partnerships which consolidate trade relations with third countries rich in critical raw materials.