This report issued by the Commission in 2010 identifies a high supply risk for a number of raw materials which are critical to European industries. The list contains:
- Antimony
- Beryllium
- Cobalt
- Fluorspar
- Gallium
- Germanium
- Graphite
- Indium
- Magnesium
- Niobium
- Tantalum
- Tungsten
- the Platinum Group Metals (PGM) and
- the Rare Earths.
The Platinum Group Metals and Rare Earths actually include 6 and 17 elements respectively, bringing the actual number of critical raw materials to 30.
These materials are necessary for high-tech products and industries.
Electric cars, for example, require lithium and neodymium, car catalysts require platinum and solar panels need indium, gallium, selenium and tellurium. Also, energy efficient high-speed trains need cobalt and samarium, and new fuel-efficient aircrafts need rhenium alloys.
The report states that:
‘The demand emanating from foreseeable technical innovations for gallium and indium in 2030 will be 4 and 3.3 times respectively higher than the total amount produced in the world today.’
‘The demand from emerging technologies might increase by a factor of more than 20 for gallium between 2006 and 2030, and by a factor of 8, 8 and 7 for indium, germanium and neodymium, respectively, in the same period.’
The high supply risk of these metals is mainly due to the fact that:
‘a high share of the worldwide production comes from China (antimony, fluorspar, gallium, germanium, graphite, indium, magnesium, rare earths, tungsten), Russia (PGM), the Democratic Republic of Congo (cobalt, tantalum) and Brazil (niobium and tantalum).This production concentration, in many cases, is compounded by low substitutability and low recycling rates.’
From: European Commission (2010) Critical raw materials for the EU. Report of the Ad-hoc Working Group on defining critical raw materials. Enterprise and Industry Directorate General.