1. The Commission shall monitor supply risks related to critical raw materials, in particular those that risk distorting competition or fragmenting the internal market.
That monitoring shall cover at least the evolution of the following parameters:
(a)
trade flows between the Union and third countries and within the internal market;
(b)
demand and supply;
(c)
concentration of supply;
(d)
Union and global production and production capacities at different stages of the raw materials value chain;
(e)
price volatility;
(f)
bottlenecks at any stages of Union production and permitting bottlenecks for Strategic Projects within the Union;
(g)
potential obstacles to trade in critical raw materials or in goods that use critical raw materials as input within the internal market.
2. The national authorities participating in the standing subgroup referred to in Article 36(8), point (e) shall support the Commission in the monitoring referred to in paragraph 1 of this Article by:
(a)
sharing relevant information they have at their disposal on the evolution of the parameters listed in paragraph 1 of this Article, except for point (e) thereof, including the information referred to in Article 21;
(b)
gathering, in coordination with the Commission and the other participating authorities, information on the evolution of the parameters listed in paragraph 1 of this Article, including the information referred to in Article 21;
(c)
providing an analysis of the supply risks for critical raw materials in light of the evolution of the parameters listed in paragraph 1;
(d)
informing the Commission without delay if the Member State becomes aware of a risk of a serious supply disruption related to critical raw materials.
3. The Commission, in collaboration with the national authorities participating in the standing subgroup referred to in Article 36(8), point (e) shall ensure that a stress test is carried out for each strategic raw materials supply chain at least every three years or if significant increase in supply risks is detected as a result of the monitoring referred in paragraph 1 of this Article. To that end, the standing subgroup referred to in Article 36(8), point (e) shall coordinate and divide the implementation of stress tests for the different strategic raw materials by the different participating authorities.
The stress tests referred to in the first subparagraph shall consist of an assessment of the vulnerability of the Union’s raw materials supply chain of the relevant strategic raw material to supply disruptions by estimating the impact of different scenarios that may cause such supply disruptions and their potential effects, taking into account at least the following elements:
(a)
where the strategic raw material concerned is extracted, processed or recycled;
(b)
the capacities of economic operators along the raw materials value chain as well as the market structure;
(c)
factors that might affect supply, including but not limited to the geopolitical situation, logistics, energy supply, workforce or natural disasters;
(d)
the availability and ability to swiftly diversify supply sources, substitute materials or mitigate demand;
(e)
the users of the relevant strategic raw material along the raw materials value chain and their share of demand, with special attention to the manufacturing of technologies relevant for the green and digital transitions as well as defence and aerospace applications;
(f)
potential obstacles to cross-border trade in relevant strategic raw materials or in goods that use strategic raw materials as an input within the internal market.
4. The Commission shall make publicly available on a free-access website and regularly update a monitoring dashboard containing:
(a)
aggregated information on the evolution of the parameters referred to in paragraph 1;
(b)
an aggregated description of calculation of the supply risk for critical raw materials in light of the information referred to in point (a) of this paragraph;
(c)
where appropriate, general suggestions for suitable mitigation strategies to decrease supply risk, unless making those general suggestions publicly available jeopardise the protection of trade or business secrets or other sensitive, confidential or classified information.
5. The Commission shall analyse the information gathered pursuant to paragraphs 1, 2 and 3 of this Article. Where the Commission considers, on the basis of the analysis, that there a is clear indication of the risk of a supply disruption that is likely to distort competition or fragment the internal market, the Commission shall alert Member States, the Board and the Union governance bodies of crisis vigilance or crisis management mechanisms whose scope covers relevant strategic or critical raw materials. Where relevant, the Commission shall also assess whether this risk requires an update of the list of strategic raw materials pursuant to Article 3(3).
1. Member States shall, in their reports submitted pursuant to Article 45, provide information to the Commission on new or existing critical raw material project on their territory that is relevant regarding Article 20(1), point (d), including a classification of new projects according to the United Nations Framework Classification of Resources.
2. Member States shall identify key market operators along the critical raw materials value chain established in their territory and shall:
(a)
monitor their activities by exploring publicly available data and if necessary through regular and proportionate surveys with a view to gathering information required for the Commission’s monitoring and stress testing pursuant to Article 20;
(b)
in their reports submitted pursuant to Article 45, provide information about the results of the information gathering pursuant to point (a) of this subparagraph;
(c)
without delay notify the Commission of major events that may hinder the regular operations of the activities of key market operators.
Key market operators may refuse to submit data requested pursuant to point (a) of the first subparagraph if the sharing of such data would lead to the disclosure of trade or business secrets. They shall submit such data only to the extent that it is already available to them. Where a key market operator refuses to submit data requested or claims that it is not available, it shall provide the requesting Member State with reasons therefor.
3. Member States shall transmit the data collated pursuant to paragraph 2, points (a) and (b), of this Article to national statistical authorities and to Eurostat for the purposes of compiling statistics in accordance with Regulation (EC) No 223/2009 of the European Parliament and of the Council ( 42 ) . Member States shall designate the national authority responsible for transmitting the data to national statistical authorities and Eurostat.
1. Member States shall, in their reports submitted pursuant to Article 45, submit to the Commission information on the state of their strategic stocks of strategic raw materials. Member States shall not be required to provide information regarding certain strategic stocks where such information could compromise their defence or national security. Where a Member State refuses to provide such information, it shall provide a justified notice.
2. The information referred to in paragraph 1 shall cover strategic stocks held by all public authorities, publicly owned companies or economic operators charged by a Member State to build up strategic stocks on its behalf and shall at least include a description of:
(a)
the level of strategic stocks available for each strategic raw material, on an aggregated level, measured both in tonnes and as a percentage of annual national consumption of the relevant strategic raw materials, as well as the chemical form and purity of the raw materials stocked;
(b)
the evolution of the level of strategic stocks available for each strategic raw material, on an aggregated level, over the preceding five years;
(c)
any rules or procedures applicable to the release, allocation and distribution of strategic stocks, unless sharing such information jeopardises the protection of trade or business secrets or other sensitive, confidential or classified information.
3. The reports referred to in paragraph 1 may include information of strategic stocks of critical and other raw materials.
1. By 24 May 2026 and every two years thereafter, the Commission shall, on the basis of the information received pursuant to Article 22(1), share with the Board:
(a)
a draft benchmark indicating a safe level of Union strategic stocks for each strategic raw material, as referred to in paragraph 2 of this Article;
(b)
a comparison of the overall level of Union strategic stocks for each strategic raw material and the draft benchmark referred to in point (a) of this paragraph;
(c)
information on the potential cross-border accessibility of strategic stocks, in light of the rules or procedures for their release, allocation and distribution.
2. The Commission, taking account of the views of the Board, shall adopt a benchmark indicating a safe level of Union strategic stocks of strategic raw materials. That benchmark shall:
(a)
be expressed as the amount of strategic raw materials needed to cover an amount of days of average daily net imports in the case of a supply disruption, calculated on the basis of the amount of imports during the previous calendar year;
(b)
take into account publicly available information on strategic stocks held by private operators;
(c)
be proportionate to the supply risk and economic importance associated with the relevant strategic raw material.
3. The Commission may, taking account of the views of the Board, issue opinions addressed to Member States:
(a)
to increase the level of strategic stocks, and where applicable, production capabilities, taking into account the comparison referred to in paragraph 1, point (b), the relative distribution of existing strategic stocks among Member States and the consumption of strategic raw materials by economic operators in the Member States’ respective territories;
(b)
to amend or coordinate the rules or procedures for the release, allocation and distribution of strategic stocks in order to improve the potential cross-border accessibility, in particular where necessary for the production of strategic technologies.
4. In preparing the opinions referred to in paragraph 3, the Commission and the Board shall give particular weight to the need to maintain and promote incentives for private operators, which rely on strategic raw materials as inputs, to constitute their own strategic stocks or to take other measures to manage their exposure to supply risks.
5. Member States shall, in their reports submitted pursuant to Article 45, provide information on whether and how they have implemented or intend to implement the opinions referred to in paragraph 3 of this Article.
6. Before the participation of at least two Member States in international or multilateral fora in the areas of strategic stocks of strategic raw materials, the Commission shall ensure prior coordination either between the Member States concerned and the Commission or by means of a dedicated meeting of the Board.
7. The data collated on the available Union strategic stocks shall be provided by the Commission to the Union governance bodies responsible for crisis vigilance or crisis management mechanisms covering relevant strategic raw materials.
8. Neither this Article nor Article 22 shall impose an obligation on Member States to hold or release strategic stocks.
1. By 24 May 2025 and within 12 months of each update of the list of strategic raw materials pursuant to Article 3(3), Member States shall identify the large companies operating on their territory that use strategic raw materials to manufacture batteries for energy storage and e-mobility, equipment related to hydrogen production and utilisation, equipment related to renewable energy generation, aircrafts, traction motors, heat pumps, equipment related to data transmission and storage, mobile electronic devices, equipment related to additive manufacturing, equipment related to robotics, drones, rocket launchers, satellites or advanced chips.
2. Large companies as referred to in paragraph 1 shall, at least every three years and to the extent the required information is available to them, carry out a risk assessment of their raw materials supply chain of strategic raw materials, including:
(a)
a mapping of where the strategic raw materials they use are extracted, processed or recycled;
(b)
an analysis of the factors that might affect their supply of strategic raw materials;
(c)
an assessment of their vulnerabilities to supply disruptions.
3. Where the information referred to in paragraph 2 of this Article is not made available to large companies as referred to in paragraph 1 of this Article by their suppliers upon request, they may carry out their risk assessment on the basis of the information published by the Commission pursuant to Article 20(4), or otherwise publicly available information, to the extent possible.
4. If significant vulnerabilities to supply disruptions are detected as a result of the risk assessment referred to in paragraph 2, large companies as referred to under paragraph 1 shall take efforts to mitigate those vulnerabilities, including by assessing the possibility to diversify its raw materials supply chains or to substitute the strategic raw materials.
5. Large companies as referred to in paragraph 1 may present a report to their board of directors containing the results of the risk assessment referred to in paragraph 2, including the source of the information on which the assessment is based, any significant risks detected as well as mitigation measures envisioned or implemented.
6. Member States may require large companies as referred to in paragraph 1 to present to their board of directors the report referred to in paragraph 5 and the requests for information referred to in paragraph 3.
1. The Commission shall set up and operate a system to aggregate the demand of interested undertakings consuming strategic raw materials established in the Union and to seek offers from suppliers to match that aggregated demand. This shall cover both unprocessed and processed strategic raw materials.
2. Prior to setting up the system referred to in paragraph 1, the Commission shall, after consulting the Board, carry out an assessment of the expected impact of the system on the market for each strategic raw material with a view to avoid any disproportionate impact on competition in the internal market.
3. On the basis of the assessment referred to in paragraph 2, when setting up and operating the system referred to in paragraph 1, the Commission shall:
(a)
choose for which strategic raw materials and at which processing stage the system can be used, taking into account the relative supply risk of different strategic raw materials;
(b)
set minimum amounts of demanded strategic raw material to participate in the system, taking into account the expected number of interested participants and the need to ensure a manageable number of participants, while taking into account the needs of SMEs.
4. Participation in the system referred to in paragraph 3, point (b) shall be open and transparent to all interested undertakings established in the Union.
5. Union undertakings participating in the system referred to in paragraph 1 may, on a transparent basis, jointly negotiate the purchase, including the prices or other terms and conditions of the purchasing agreement or use joint purchasing in order to achieve better conditions with their suppliers or to prevent shortages. Participating Union undertakings shall comply with Union law, including Union competition law.
6. Entities shall be excluded from participating in demand aggregation and joint purchasing as well as from participating as suppliers or service providers if they are:
(a)
targeted by Union restrictive measures adopted pursuant to Article 215 TFEU;
(b)
directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies targeted by such Union restrictive measures.
7. By way of derogation from Article 176 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council ( 43 ) , the Commission shall contract the necessary services of an entity established in the Union through a procurement procedure pursuant to that Regulation, acting as a service provider to set up and operate the system referred to in paragraph 1 of this Article. The service provider selected shall not have any conflict of interest.
8. The Commission shall define in the service contract the tasks to be provided by the service provider, including the allocation of demand, the allocation of access rights for supply, registration and verification of all participants, publication and reporting of the activities and any other task necessary to set up and operate the system referred to in paragraph 1. The service contract shall also deal with the practical arrangements relating to the operation of the service provider including the use of the IT tool, the security measures, the currency or currencies, the payment regime and liabilities.
9. The service contract with the service provider shall reserve to the Commission the right to monitor and audit it. To that end, the Commission shall have full access to the information held by the service provider in relation to the contract. All servers and information shall be physically located and stored in the territory of the Union.
10. The service contract with the service provider shall determine the ownership of the information obtained by the service provider, and shall provide for the possible transfer of that information to the Commission at the termination or expiry of the service contract.
