EERA, 2023, EERA policy analysis - Securing sustainable critical raw material supply for clean energy in Europe.

The European Energy Research Alliance (EERA) was established 15 years ago as the formal research pillar of the European Strategic Energy Technology Plan (SET Plan). Its mission is to catalyse European energy research for a climate-neutral society by 2050, aligning seamlessly with the EU’s long-term climate goals. By coordinating the efforts of about 250 leading energy research organisations across 30 countries, EERA provides the EU with world-class scientific expertise in low-carbon energy technologies and advises the EU on the best energy transition strategies. In consonance with this mission, the current report analyses the strategic significance of critical raw material (CRM) security of supply within the context of Europe’s clean energy transition (CET). Europe’s journey towards climate neutrality critically hinges upon the massive deployment of low-carbon technologies, which is expected to generate a dramatic increase in CRM usage. These materials are pivotal in most low-carbon technologies, such as PV modules, wind turbines, batteries and electrolysers, to name but a few. Against this backdrop, one central concern revolves around Europe’s profound import dependency on these critical materials, which inherently constitutes a major vulnerability with respect to the execution of the CET. The race against climate change is known to be paralleled by a race for industrial domination of the clean technology sector. This report is of particular significance at a time of profound reshuffling of the post-Cold War geopolitical order, evidenced by extreme international tensions, the emergence of unexpected new regional political alliances and new economic corridors, and the re-emergence of major protectionist policies and trade barriers, all factors that constitute major risks for CRM supply chains. Based on a range of studies from authoritative international agencies, research institutions, and think tanks, the report provides a reliable and detailed analysis of the state of play of the collective knowledge base on CRMs. Leveraging the wide-ranging expertise of the EERA scientific community in the field of low-carbon technologies, the analysis provides incremental intelligence on how vulnerabilities of the CRM supply chain could affect the EU’s clean technology industry and CET process. A deep dive is provided into five technologies that are central to the CET, namely, solar photovoltaics (PV), wind turbines, batteries, electrolysers and power electronics, analysing how these technologies could potentially be affected by disruption of CRM value chains. The report concludes with a set of policy recommendations aimed at addressing both the geopolitical challenge of securing the supply of CRMs as a whole and the specific details of the five technologies analysed. It ultimately emphasises the central role of research in most of the mitigation strategies available to manage the systemic risks posed by CRM supply security.