Briefing - EU–Latin America: Enhancing cooperation on critical raw materials - 13-12-2024
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Economic security has become crucial for the EU. Both the Letta Report on the future of the single market and the Draghi Report on the future of European competitiveness emphasise the need to intensify efforts to secure the EU's supply of critical raw materiaBriefing - EU–Latin America: Enhancing cooperation on critical raw materials - 13-12-2024
Economic security has become crucial for the EU. Both the Letta Report on the future of the single market and the Draghi Report on the future of European competitiveness emphasise the need to intensify efforts to secure the EU's supply of critical raw materials (CRM). Europe is vulnerable to both coercion and geo-economic fragmentation because of its high dependency on strategic raw materials from countries with which the EU is not strategically aligned. Diversifying imports of strategic raw materials is key to mastering the clean transition of Europe's economy, mitigating supply chain risks and reducing the EU's strategic dependencies. In line with its CRM strategy, the EU is seeking to conclude new partnerships in the context of the EU trade and Global Gateway strategies. However, the EU is not the only actor looking to secure access to CRM supplies. China, for example, is bolstering its global dominance in strategic and emerging technologies, continuously increasing its presence in Latin America (and Africa) in order to secure its supply of strategic raw materials. The region is primarily rich in lithium and copper, which are essential for renewable energy technologies and the production of the lithium-ion batteries used in laptops, smartphones, and hybrid and electric vehicles. Since 2023, Latin America, too, has won the EU's renewed attention, and real steps to enhance cooperation on CRM have been taken. In 2023, the EU signed a memorandum of understanding with Argentina and Chile on sustainable raw materials value chains. In November 2024, an interim trade agreement with Chile was ratified – the first EU trade agreement comprising a specific chapter on energy and raw materials. In December 2024, the EU and Mercosur finally reached a political agreement on the EU–Mercosur partnership agreement. As Mercosur countries, primarily Argentina and Brazil, are major producers of CRM, the agreement could help the EU secure an efficient, reliable and sustainable flow of the raw materials that are critical for the clean transition and for the EU's strategic autonomy more widely. Source : © European Union, 2024 - EP Read more