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Factsheet: EU-Mercosur partnership agreement - Enhancing trade and investment in critical raw materials

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EU-Mercosur partnership agreement

Enhancing trade and investment in critical raw materials

A secure and sustainable supply of critical raw materials is at the core of the green and digital transitions. It is vital for increased EU security and defence capabilities.

While the European Critical Raw Materials Act aims at ensuring a diverse, secure and sustainable supply of critical raw materials for the EU’s industry, still the EU is not self-sufficient in the supply of these materials and will continue to rely on imports.

The EU-Mercosur agreement will be instrumental in securing critical raw material supplies, since Mercosur countries are major producers of many of these materials, and it does so in a safe and sustainable manner.

CountryCRMWorld shareEU sourcing shareUse
BrazilAluminium/Bauxite10.4% of extraction12%Aluminium production
Natural Graphite7.5% of extraction13%Batteries, refractories for steelmaking
Niobium88.8% of processing82%High-strength steel and super alloys for transportation and infrastructure, high-tech applications (capacitors, superconducting magnets, etc.)
Manganese6.1% of extraction8%Steel-making, batteries
Silicon Metal7.2% of processing9%Semiconductors, photovoltaics, electronic components, silicones
Vanadium4.8% of processing7%High-strength low alloys
Tantalum15.9% of extraction16%Capacitors for electronic devices, super alloys
ArgentinaLithium11% of processing6%Batteries, glass and ceramics, steel and aluminum metallurgy

Source: Study on the Critical Raw Materials for the EU 2023 - Final Report (europa.eu)

Sustainability at the heart of critical raw materials trade

The EU-Mercosur agreement will ensure one of the highest sustainability standards in critical raw materials trade and investment, through:

  • Establishing a dedicated trade and sustainable development chapter.
  • Promoting corporate social responsibility standards.
  • Helping the dissemination of international instruments for the responsible management of supply chains.
  • Maintaining companies’ obligations to comply with relevant environmental and labour legislation in the country concerned.