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[To Eurosmart members only]
Ursula von der Leyen’s State of the EU speech: Focus on Raw Materials
On 14 September, the President of the European Commission gave her annual speech on the State of the European Union. Most of the speech was focused on the war in Ukraine, the energy crisis and the defence of democracy.
Ursula von der Leyen also (briefly) mentioned the need for the EU to move forward with the digital transition. She focused on access to raw materials for digital transformation, in particular rare earth and lithium. The President noted that the need for rare earth will be fivefold multiplied by 2030. The problem is that one country controls the market of rare earth. For this reason, the EU needs new partnerships with similarly minded and reliable partners. Ursula von der Leyen mentioned the upcoming ratification of trade agreements with Chile, Mexico and New Zealand.
Ursula von der Leyen underlined that processing these materials is just as critical as sourcing them. 90% of rare earth and 60% of lithium is processed in China. The EU will study the supply chain, identify problems and alternatives, and build up strategic reserves. Ursula von der Leyen announced the Critical Raw Material Act. In addition, the EU will increase its financial participation in the Important Project of Common European Interest on Raw Materials. Ursula von der Leyen will also push for a new sovereignty fund.
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