EU Critical Raw Materials Act (CRMA)
ENFORCEMENT TIMELINE
In force since May 23, 2024
Overview
The Critical Raw Materials Act (CRMA, Regulation (EU) 2024/1252) is an EU regulation aimed at reducing dependence on external suppliers — particularly excessive reliance on specific countries — for the 34 critical raw materials and 17 strategic raw materials (including lithium, cobalt, nickel, and rare earth elements) needed for clean technology, electric vehicles, digital, and defense industries, thereby strengthening supply chain resilience and security.
It sets clear domestic benchmarks for 2030 (10% extraction, 40% processing, 25% recycling, and no more than 65% of any single raw material sourced from a single third country), together with an accelerated permitting process for strategic projects, mandatory supply chain risk assessments (stress tests) for large companies, and disclosure requirements for recyclability and recycled content in products containing permanent magnets (such as neodymium magnets).
Enforcement Timeline
March 2023: The European Commission submits its legislative proposal for the Critical Raw Materials Act (CRMA).
March 2024: The European Parliament and Council formally adopt the Act.
May 23, 2024: The CRMA (Regulation (EU) 2024/1252) formally enters into force.
2025–2026: Delegated acts on recycled-content disclosure and recyclability requirements are adopted for products containing permanent magnets (EV motors, wind turbines, home appliances, and similar goods).
2030: Deadline for the "2030 targets," including 40% domestic processing, 25% recycling, and the 65% single-country dependency cap.
Business Impact
Companies supplying products that use neodymium magnets, rare earth elements, lithium, or similar materials to the EU market must understand and manage the country-of-origin breakdown of their raw material sourcing and the associated supply chain risks.
Companies in the permanent-magnet-related business — those selling motors or equipment incorporating magnets — will increasingly be required to design for magnet removability (design for recycling) and to track and disclose data on recycled rare earth content.