The EU has a list of 34 critical raw materials of great economic importance, such as lithium, iridium, and cobalt. If the supply of these materials is disrupted, the risks are greatest. Of these, 17 materials have been designated as strategic. They are crucial for the energy and digital transition, for our health, our safety, and the defense and aerospace sectors.
The NMO, in collaboration with knowledge institutions, foreign observatories, and the business community, ensures monitoring of the chains of critical raw materials. The organization also develops analyses to assess the vulnerability of the value chain for each critical raw material. Finally, the NMO has a warning function for companies and the government if disruptions in raw material (chains) are imminent or already occurring.
Minister Dirk Beljaarts (Economic Affairs): “The observatory will do relevant work. For example, by investigating where we are too dependent, but also what the alternatives are, such as sourcing from other countries or recycling. Currently, our picture is still incomplete, and we cannot act quickly enough when needed regarding supply risks.”
The minister continued: “The Netherlands takes its responsibility to tackle European risky dependencies. We have little critical raw materials in the ground ourselves, but we can be a processing link in refining. After all, we are an important import and transshipment country with our ports and hinterland connections. Moreover, by focusing on innovation or circularity of products, we create less scarce alternatives and new economic value.”
Countries outside Europe dominate a significant part of world production
Sufficient supply security of various critical raw materials, such as lithium, iridium, and cobalt, is necessary for batteries, wind turbines, semiconductors, hydrogen production, solar panels, LED lighting, defense applications, and even mobile phones. For some critical raw materials, we are currently dependent on countries outside Europe that control 90% of world production.
Therefore, by 2030, the aim is to extract 10% of the annual European consumption of these strategic raw materials within the EU, refine 40% within the EU, and recycle 25% within the EU. Furthermore, the EU may be a maximum of 65% dependent on a single country for the supply of a strategic raw material. Within the National Raw Materials Strategy, the cabinet focuses on increasing supply security for the Netherlands by mapping risky dependencies, looking for opportunities for stockpiling and processing in the Netherlands, and developing circular use of critical raw materials.
The Geological Survey of the Netherlands – part of the knowledge institution TNO - executes the NMO in collaboration with the business community, industry organizations, and researchers on behalf of the Ministry of Economic Affairs.