Raw materials: Council adopts position to reinforce the security of supply and the circularity of EU industry 10:55 Council adopts its negotiating position on the amended[...]

The Council has adopted its position on amending the Critical Raw Materials Act (CRMA). The amendments proposed by the Commission transfer the responsibility for identifying large companies using critical raw materials (CRMs) from member states to the European Commission. They also improve the management, transparency, and accountability of large companies in securing critical raw materials. Additionally, the proposal from the Commission empowers it to suggest the measures large companies, facing potential supply disruptions, must take to ensure uninterrupted production. Finally, the amendments propose measures to increase the recycling of permanent magnets.

The Council position supports the objectives of the proposal but requires the Commission to inform member states and the European critical raw materials board of which companies have been identified as 'large companies' and which are their vulnerabilities. It also clarifies the Commission's authority to propose risk-mitigation measures. Finally, the Council allows the use digital product passports to comply with information obligations about permanent magnets.

Security of supply and risk mitigation

The Council position emphasizes the importance of critical raw materials (CRMs) for all industries, including defence, and aligns the methodology for calculating the presence recycled content in industrial products with the eco-design regulation.

The negotiating mandate also includes requirements for the European Commission to notify member states when requesting information about companies in their country. When the Commission requests compliance-related information to a large company, it will have to share this information with the member state in which the company is based.

Furthermore, the Commission is also requested to present its risk assessment of identified vulnerabilities to the European critical raw materials board, to ensure strong participation of the member states to this process. The European critical raw materials board, established under the EU critical raw materials act, is an advisory body that oversees strategic raw material projects and supply chain resilience. It is composed of member state representatives and chaired by the Commission.

The negotiating mandate clarifies that the Commission will have the authority to propose best efforts risk-mitigation measures for large companies, to ensure the continuity of the production in case of supply disruption. These measures may include limits to the dependence on a single supplier, but they will have to consider the availability of alternative sources.

Regarding permanent magnets, the Council allows the use of product passports to disclose the materials used in these products, promoting transparency and traceability, and reducing the administrative burden. A product passport is a record that tracks and shares key information about a product throughout its lifecycle.

Next steps

The position agreed today provides the Council presidency with a mandate for negotiations with the European Parliament, which will start as soon as the latter adopts its position.

Background

The critical raw materials act (CRMA) entered into force in May 2024. It establishes a framework to secure a sustainable, diversified, and stable supply of critical minerals essential for the green and digital transitions.

It sets 2030 targets for 10% extraction, 40% processing, and 25% recycling of strategic raw materials in the EU to reduce reliance on single-country suppliers. Since the CRMA's entry into force, the geopolitisation of critical raw materials supply has been heightened by a series of Chinese export restrictions on rare earths elements and other critical raw materials.

On 3 December 2025, the Commission adopted the 'RESourceEU' action plan, which involves amending the critical raw materials act (CRMA) and taking a series of future actions in the following areas: internal market, joint purchasing, stockpiling, innovation, circularity, external partnerships, simplification in permitting, investment in mining, processing and recycling projects, and better support for their identification.

• Proposal for a regulation amending Regulation (EU) 2024/1252
• Council and Parliament strike provisional deal to reinforce the supply of critical raw materials
• Proposal for establishing a framework for ensuring a secure and sustainable supply of critical raw materials - finalised text