Raw materials: due diligence of the importer

As we indicated , on 16.03.2023, the European Commission (“Commission”) proposed a set of actions in order to ensure the European Union’s secure and sustainable access to critical raw materials, which is essential for the European Union to succeed in its green and digital transitions (for example: chemicals for the batteries).

The Proposed Regulation aims to address supply risks in critical raw materials by (i) building the European Union’s capacity to supply critical raw materials through extraction, processing and recycling; (ii) diversifying external supplies of those materials; (iii) monitoring and mitigating existing and future supply risks; and (iv) ensuring the free movement of critical raw materials in the single market.

To ensure company risk preparedness, the Proposed Regulation requires large companies that manufacture strategic technologies using strategic raw materials in the Member States to audit their supply chain every two years, including:

• mapping where the strategic raw materials they use are extracted, processed or recycled (circular economy);
• a stress test of their supply chain of strategic raw materials, including its vulnerability to supply disruptions.

Next steps: the Proposed Regulation, which is subject to the ordinary legislative procedure, must be approved by the European Parliament and the Council of the European Union.

Both institutions will discuss the Proposed Regulation in the coming months and can propose further amendments