Study on Critical Raw Materials at EU Level Final Report
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Ref. Ares(2014)2063495 - 24/06/2014 Study on Critical Raw Materials at EU Level Final Report A report for DG Enterprise and Industry 16 December 2013 This report has been prepared by: This report has been jointly prepared by Oakdene Hollins and Fraunhofer ISI The authors from Oakdene Hollins are Adrian Chapman, Josephine Arendorf, Tecla Castella, Paul Thompson and Peter Willis The authors from Fraunhofer ISI are Luis Tercero Espinoza, Stefan Klug and Eva Wichmann Checked as a final copy by: Katie Deegan Reviewed by: Nick Morley Date: 16 December 2013 Contact: [email protected] File reference number: EC—11 315 –Final Report Issue 3.docx Oakdene Hollins provides these services to clients: ● environmental labelling ● programme management and evaluation ● policy and strategy development ● market reports ● carbon footprints & LCA reviews ● materials flow analysis ● “Lean”manufacturing ● economic analysis & modelling ● statistical analysis ● technology appraisal. Oakdene Hollins is registered to For more information visit www.oakdenehollins.co.uk ISO 9001:2008 and ISO 14001:2004 Contents amendment record This report has been amended and issued as follows: Version Date Description Author Editor Issue 1.0 15/11/2013 Issue 1.0 for DG ENTR AC KD Issue 2.0 12/12/2013 Issue 2.0 for DG ENTR following comments AC PW Issue 3.0 16/12/2013 Minor revision for DG ENTR following comments AC LM We print our reports on Ecolabel / recycled paper Glossary AHWG Ad-Hoc Working Group on defining critical raw materials APPPC Asia and Pacific Plant Protection Commission BGR German Federal Institute for Geosciences and Natural Resources BGS British Geological Survey BRGM Bureau de Recherches Géologiques et Minières CAGR compound annual growth rate CEPI Confederation of European Paper Industries CR Concentration Ratio CRM Critical Raw Materials DRC Democratic Republic of the Congo ECHA European Chemicals Agency EEA European Environment Agency EIP European Innovation Partnership on Raw Materials EITI Extractive Industries Transparency Initiative EPI Environmental Performance Index ETRMA European Tyre & Rubber Manufacturers’ Association EUBA European Bentonite Association FAO Food and Agriculture Organization of the United Nations GDP Gross Domestic Product GVA Gross Value Added HHI Herfindahl-Hirschman-Index HREEs Heavy Rare Earth Elements ICA International Copper Association ICSG International Copper Study Group ICT Information and Communication Technology IFA International Fertilizer Industry Association ILZSG International Lead and Zinc Study Group INSG International Nickel Study Group LREEs Light Rare Earth Elements MMTA Minor Metals Trade Association OECD Organisation for Economic Co-operation and Development PGM platinum group metal ppb parts per billion PPI Policy Potential Index ppm parts per million PV photovoltaic REACH Registration, Evaluation, Authorisation and restriction of Chemicals REE Rare Earth Elements RGI Resource Governance Index RMI Raw Materials Initiative RoHS Directive Restriction of Hazardous Substances Directive SALB South American Leaf Blight STDA Selenium Tellurium Development Association SVHC Substances of Very High Concern (REACH) TDA tyre derived aggregates UNECE United Nations Economic Commission for Europe UNEP United Nations Environmental Programme USGS US Geological Survey VAT value added tax WGI World Governance Index WMD World Mining Data WTO World Trade Organisation For DG Enterprise and Industry Abiotic: Metals (or metallic ores) and industrial minerals. These are derived from static reserves. Biotic: Materials which are derived from renewable biological resources that are of organic origin but not of fossil origin. Only non-energy and non-food biotic materials are under consideration in this report. Deposit: A concentration of material of possible economic interest in or on the earth’s crust. Reserves: The term is synonymously used for “mineral reserve”, “probable mineral reserve” and “proven mineral reserve”. In this case, confidence in the reserve is measured by the geological knowledge and data, while at the same time the extraction would be legally, economically and technically feasible and a licensing permit is certainly available. Resources: The term is synonymously used for “mineral resource”, “inferred mineral resource”, “indicated mineral resource” and “measured mineral resource”. In this case, confidence in the existence of a resource is indicated by the geological knowledge and preliminary data, while at the same time the extraction would be legally, economically and technically feasible and a licensing permit is probable. Units: Conventional SI units and prefixes used throughout: {k, kilo, 1,000} {M, mega, 1,000,000} 9 {G, giga, 10 } {kg, kilogramme, unit mass} {t, metric tonne, 1,000 kg}. For DG Enterprise and Industry Contents 1 Executive Summary 1 2 Introduction 5 2.1 Concerns over Raw Materials 5 2.2 Materials Criticality and Previous EU Study 10 2.3 Purpose of this Study 11 3 Materials Scoping 13 3.1 Abiotic Materials 14 3.2 Biotic Materials 15 4 Criticality Analysis 16 4.1 Introduction 16 4.2 EU Criticality Methodology 16 4.3 Results of Criticality Analysis 19 4.4 Availability and Quality of Data 21 4.5 Analysis of Supply 22 4.6 Outlook for the Critical Raw Materials 25 4.7 Summary and Conclusions from Criticality Analysis 27 5 Possible Influences on Criticality 29 5.1 Introduction 29 5.2 Exploration Stage 30 5.3 Mining Stage 36 5.4 Refining Stage 59 5.5 End-Use Stage 67 5.6 Summary and Conclusions for Additional Influences 75 6 Criticality Analysis of Biotic Materials 77 6.1 Introduction 77 6.2 Scope and Discussion on Materials 77 6.3 Review of Criticality Methodology for Biotic Materials 80 6.4 Criticality Analysis of Biotic Materials 84 6.5 Influences on Criticality 88 6.6 Summary and Conclusions for Biotic Materials 93 7 Suggested Actions 95 7.1 Suggestions to the European Commission 95 7.2 Suggestions for Future Studies 95 7.3 Suggestions for Actions Relating to Critical Raw Materials 96 7.4 Suggestions for Actions Relating to Biotic Raw Materials 97 7.5 Other Suggested Actions 97 Annex A – Members of the EU Ad-Hoc Working Group on Raw Materials 98 Annex B – Description of EU Criticality Methodology 99 For DG Enterprise and Industry Annex C – Statistical Information for Criticality Assessment 105 Megasector values and assignments 105 WGI and EPI values (Scaled) 111 End use data sources and locality 114 Production data sources 115 Annex D – Worked Example of Assessment Calculation 116 Annex E – Further Data and Detailed Results of Criticality Assessment 120 End uses, megasector assignment and substitution values 120 Economic importance and supply risk calculations 126 Comparison of 2010 and 2013 studies 127 Large format results and supply charts 129 Annex F – Comparison with Other Methodologies 134 Annex G – Land Use and Mining Governance Data (EITI & PPI) 145 Deposit Categorisation 145 EITI Status of Countries 147 PPI Scores (2012/2013) 148 Annex H – Possible Changes to Scope and Quantitative Methodology 149 Annex I – Sector specific discussions 157 Raw Materials and their criticality in the European defence sector 157 Critical raw materials in the energy technologies 158 Materials of concern to the ICT sector 159 Critical Raw Material Extended Profiles See Separate Document Non-Critical Raw Material Profiles See Separate Document For DG Enterprise and Industry 1 Executive Summary Raw materials are fundamental to Europe’s economy, and they are essential for maintaining and improving our quality of life. Recent years have seen a growth in the number of materials used across products. Securing reliable and undistorted access of certain raw materials is of growing concern within the EU and across the globe. As a consequence of these circumstances, the Raw Materials Initiative was instigated to manage responses to raw materials issues at an EU level. At the heart of this work is defining the critical raw materials for the EU’s economy. These critical raw materials have a high economic importance to the EU combined with a high risk associated with their supply. The first criticality analysis for raw materials was published in 2010 by the Ad-Hoc Working Group on Defining Critical Raw Materials. Fourteen critical raw materials were identified from a candidate list of forty-one non-energy, non-food materials. The group highlighted the need to revise this list at regular intervals. This present study follows on from this recommendation, revising and extending the work carried out previously at the EU level. Three key areas are addressed: Revision of the list of critical materials for the EU. Discussion of additional influences on raw material criticality. Extension of the analysis to biotic materials. Fifty-four non-energy, non-food materials are analysed using the same methodology as the previous study; this extended candidate list includes seven new abiotic materials and three biotic materials. In addition, greater detail is provided for the rare earth elements by splitting them into ‘heavy’ and ‘light’ categories. Critical raw materials experience a combination of high economic importance and high supply risk relative to the other candidate materials, and are defined using thresholds for each measure set during the previous study. The overall results of the 2013 criticality assessment are shown below; the critical raw materials are highlighted in the red shaded area of the graph. Twenty one critical raw materials are assessed as critical from the list of fifty-four candidate