European Parliament Amends Critical Raw Materials Act
Lawmakers vote to strengthen EU supply chains with new funding and market intelligence oversight.
Updated on Oct. 20, 2026 in Electric Vehicles
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Should the European Union increase government intervention to secure critical raw material supplies?
The European Parliament has approved proposed amendments to the Critical Raw Materials Act to bolster strategic autonomy. The measure aims to diversify essential supply chains and improve resilience against potential market disruptions.
Why it matters
These measures are designed to ensure the European Union secures a reliable flow of raw materials essential for strategic industries. By formalizing supply chain mapping and market intelligence, the EU seeks to reduce dependence on external suppliers for key components.
The proposal includes a CRM Fund of €2 billion to support projects throughout the 2028-2034 budget period. Strategic project applications will be opened by the Commission at least twice annually.
The players
European Parliament
The legislative body of the European Union that represents citizens and debates laws across the continent.
European Commission
The executive branch of the European Union responsible for proposing legislation and implementing decisions.
The details
The newly proposed framework establishes a central body for market intelligence, stockpiling, and joint purchasing. It also introduces potential export restrictions on permanent magnet scrap and waste while leveraging price-stabilisation mechanisms for developers.
Timeline
December 2023: Original Critical Raw Materials Act was adopted.
December 2025: Commission proposed amendments to the CRMA.
October 20, 2026: Parliament voted on the amendments.
2028-2034: Duration of the proposed EU long-term budget.
Roadmap
This legislation aligns with the broader push to localize the supply chain for electric vehicle components and renewable energy infrastructure. It positions European manufacturing to be more resilient against the global volatility currently impacting battery metal procurement.
The establishment of a €2 billion fund and price-stabilization mechanisms aims to reduce production costs for domestic manufacturers over the long term. These changes could stabilize the availability of critical materials used in electric vehicle batteries and electric motors.
The takeaway
The move demonstrates a commitment to securing internal resources to stabilize long-term manufacturing costs. Stakeholders should monitor upcoming negotiations for potential changes to export regulations that could influence global supply chain logistics.
What happens next
The European Parliament is now scheduled to begin formal negotiations with EU member states to finalize the legislation.
Further reading
Learn more about the industry shift in our Electric Vehicles section.
Live Poll
Should the European Union increase government intervention to secure critical raw material supplies?
