Europe in race to secure raw materials critical for energy transition

Critical raw materials including lithium and rare earths are likely to soon be more important than oil and gas, as Europe aims for a zero-carbon future.

In Estonia, the small coastal town of Sillamäe in Estonia is home to the only commercial rare earth separation facility in the EU - Silmet, owned by Canadian group Neo Performance Materials. But what are rare earths and why are they integral to so many technologies?

Vasileios Tsianos, Director of Corporate Development, Neo Performance Materials explains: "Rare earths are the critical raw materials needed for the EU’s transition to green technologies. 

"Case in point neodymium and praseodymium, two rare earth elements that we process at Silmet and then we will be using to make sintered rare earth permanent magnets that are energy saving and used in the drive train motors of electric vehicles, saving in some cases over 20% of the battery size needed for electric vehicles.”

There are 17 rare earth elements that have hundreds of uses from missile guidance systems to banknotes, although the main use is for making ultra-powerful magnets.

Europe is well aware of the need for new mines, as well as strengthening the entire raw materials value chain.

Europe's dependency on China and other 'third' countries

At the moment it is dependent on a small number of third countries, in particular China, which supplies 66% of all critical raw materials and 98% of rare earths.

The EU is due to adopt the Critical Raw Materials Act on March 14, leveraging the power of the single market, to ensure Europe has a diverse and reliable supply of these materials, while ensuring high social and environmental standards.

Vasileios Tsianos, Director of Corporate Development, Neo Performance Materials:

"Automotive