While Brussels buzzes with discussions about critical raw materials, the focus remains on geopolitics and extraction. These minerals are essential for technologies ranging from wind turbines to electric cars—the very foundation of the green transition. The European Union’s reliance on foreign suppliers has turned raw materials into a pressing political concern, especially as global demand for these resources is set to quadruple in the pursuit of climate commitments. Yet, in our rush to secure new supply chains, we’re overlooking a crucial solution right in front of us: recycling.
The stakes are high. The EU relies almost entirely on foreign suppliers for 14 out of 27 critical raw materials, and over 90% for three others. China’s dominance in this arena is stark; it controls around 60% of global lithium refining while only mining 9% of the world’s supply. These figures reveal a fundamental vulnerability in Europe’s industrial strategy.
The recently introduced Critical Raw Materials Act aims to tackle these dependencies by setting ambitious targets, such as limiting reliance on any single country to 65% of annual consumption and achieving 25% of domestic needs through recycling by 2030. However, while manufacturing operations receive generous incentives and political backing, the recycling industry remains severely under-supported. Current regulations treat valuable materials as waste, creating unnecessary obstacles for companies seeking to establish robust recycling operations.
The recycling sector’s potential is largely untapped. Europe is home to several innovative recycling firms with cutting-edge technologies, yet most are small players in a market that could be much larger. Existing regulations complicate the trade of recycled materials between EU member states, and investment in recycling infrastructure lags behind other sectors of the green economy.
What is needed now is a comprehensive approach that prioritizes recycling.
First, we must expedite investments in recycling infrastructure through dedicated funding mechanisms and streamlined permitting processes. Developing new recycling operations is significantly quicker than launching new mining projects, providing a faster route to reducing dependencies.
Second, as supported by Commission President von der Leyen, we should establish a true single market for secondary materials. This involves reviewing waste classifications and creating harmonized definitions for secondary materials. Market-based instruments, such as targeted tax incentives, are crucial to encourage investment in recycling technologies.
Third, we need to forge strategic international partnerships to create cross-border recycling networks. This includes developing trade frameworks for secondary materials that go beyond traditional waste shipping regulations. The Global Gateway initiative could play a key role in establishing sustainable recycling partnerships worldwide, benefiting both partner countries and securing sustainable material flows.
Fourth, simplifying the recycling of complex products is essential. Clear product labeling and digital product passports can facilitate material tracking and recovery. This should be supported by specific recycling targets for individual materials and comprehensive guidance on recycling technologies.
Finally, coherence between the Critical Raw Materials Act and other EU legislation is vital, particularly concerning collection targets, eco-design requirements, and waste definitions. This harmonization should promote absolute progress towards resource consumption goals within planetary boundaries.
The EU has the opportunity to leverage its strengths—such as the single market, strong rule of law, high environmental standards, and advanced infrastructure—to create competitive advantages in sustainable material recovery. By promoting global environmental standards through market mechanisms and building domestic capacity, Europe can establish a resilient and sustainable supply chain that mitigates dependencies while advancing environmental goals.
Critics may argue that recycling alone cannot meet our raw material needs, which is true. However, every percentage point of materials we recycle reduces the need for imports from potentially competing partners. Furthermore, developing a robust recycling industry would give Europe a competitive edge in an increasingly sustainability-focused world.
The technology is available, and European companies possess world-leading expertise in recycling complex materials. What’s lacking are the market conditions and regulatory frameworks to make these operations economically viable at scale. By giving recycling the same level of attention and support as mining and manufacturing operations in the name of competitiveness, we can build a more resilient and sustainable supply chain.
Europe’s industrial future hinges on securing stable supplies of critical raw materials. The choice is not between mining and recycling; both are necessary. Yet, while we have focused on securing new sources of raw materials for years, we have neglected to create the regulatory and financial frameworks needed for a thriving recycling industry. It’s time to rectify this oversight. The technology is ready, the expertise is available, and the market is poised for growth. All we need now is the political will to make it happen.
