The European Parliament has passed the Critical Raw Materials Act, aimed at decreasing the European Union’s heavy reliance on China for crucial minerals vital for green technologies such as solar panels, wind turbines, and electric vehicle batteries. Currently, the EU relies on China for 99% of rare earth metals. This legislation establishes a framework to ensure a secure and sustainable supply of these raw materials, diversify imports, and enhance processing capacity throughout the value chain. Critical raw materials are pivotal for industries like technology, manufacturing, energy, and defense, impacting a nation’s economic security and competitiveness.
Facts/Terms for UPSC Prelims
- Rare Earth Elements: Rare earth elements are a group of seventeen chemically similar elements with unique magnetic and luminescent properties. They are essential components in various technologies, including electronics, renewable energy, and defense systems.
- Lithium: Lithium is a light and highly reactive metal used in batteries for electric vehicles and renewable energy storage systems. Its demand has surged with the growth of electric mobility and renewable energy.
- Cobalt: Cobalt is a transition metal used in the production of lithium-ion batteries, particularly for portable electronic devices and electric vehicles. Ensuring a stable supply of cobalt is crucial for the development of sustainable energy solutions.
- Platinum Group Metals (PGMs): PGMs include metals such as platinum, palladium, and rhodium, known for their exceptional catalytic properties. They are critical in automotive catalytic converters, reducing harmful emissions from vehicles.
- Geopolitical Significance: Geopolitical significance refers to the political and strategic importance of resources, regions, or nations in international relations. Critical raw materials often have geopolitical importance because they can influence a country’s economic strength and global standing.
