Recycling of critical raw materials is no longer just an element of ecology, but is becoming one of the pillars of Europe's economic security. These elements, used, among others, in the energy, automotive and biomedical industries, today come mainly from import from third countries. The European Union wants at least one quarter of the demand for critical raw materials to come from recycling by 2030. Deloitte experts indicate that Poland can play a key role in this process.
– Europe is building its raw material independence. So far, for many years we have been relying on the import of critical raw materials, either from China or other foreign markets, but now Europe is increasingly recognizing the need to extract critical raw materials not from the depths of the earth, but from what we have accumulated in waste – says Joanna Leoniewska-Gogola, leader of the Circular Economy team, director in the Sustainability team at Deloitte, to the Newseria agency. – We are now at the stage of transition from strategy to implementation on an industrial scale. We are already building a legal framework, investing in technologies and building the first recovery chains that are closed within Europe.
According to data from the European Commission and Eurostat, in 2024 95 percent imports of rare earth metals came from China, Malaysia and Russia. This is a group of 17 elements used, among others. in mobile phones, computers and medical technologies. Supplies of magnesium – one of the critical raw materials – were almost entirely dependent on China. This element is used, among others, automotive, aerospace, electronics and biomedical industries. There was an equally high addiction to gallium, which accounted for 73%. was imported from the Middle Kingdom. This was followed by Canada (13%) and Russia (11%). Gallium is used, among others, in smartphones, satellites, radar systems, LEDs and photovoltaic cells.
Recycling is becoming an element of critical infrastructure
– Recycling is a very important element in raw material security. Therefore, we are no longer talking about it only in the context of ecology, but also economic and industrial stability. The more we are able to recover raw materials from waste, the more independent we become, either from the import of raw materials or from geopolitical tensions. We are also shortening supply and value chains, so we have a significant impact not only on ecology, but also on economics and politics. It can be said that recycling is slowly becoming an element of critical infrastructure, just like in the energy or logistics industry, says Joanna Leoniewska-Gogola.
In May 2024, the European Critical Raw Materials Act (CRMA) entered into force, which aims to guarantee stable, safe and sustainable elements of this type for the EU industry. According to the regulation, by 2030 imports from one third country cannot exceed 65%. At least 10 percent of the EU's annual consumption of raw materials is to be extracted in the EU, 40 percent processed, and 25 percent it has to come from recycling. The act assumes that EU countries are to take actions that will improve the collection of waste rich in critical raw materials and ensure their recycling into secondary critical raw materials.
– Critical raw materials that are necessary to build our digital and energy transformation are now of the greatest importance. Europe is now putting a lot of emphasis on this. We are talking here primarily about lithium, cobalt, nickel and manganese, which are available in various batteries. We are also talking about copper, silver and aluminum, which are available in electronic waste, or rather in electronics. We are also talking about rare earth metals, which are already available in IT equipment, engines and wind turbines, says the director of the Sustainability team at Deloitte. – So we have access to these raw materials, but the key is to obtain them and then recover them.
An important element of the implementation of the CRMA regulation are strategic projects that are intended to increase national capabilities in the field of critical raw materials. In the first round of recruitment, the European Commission approved 47 of them, from 13 member states – Belgium, France, Italy, Germany, Spain, Estonia, Czech Republic, Greece, Sweden, Finland, Portugal, Romania and Poland. Ten projects concern the area of raw material recycling.
A chance for Poland? Here's what our plans look like
– Poland has a very large potential to participate in the chain of recovery of critical raw materials. On the one hand, we have experience in large industry, so this already puts us in a quite good position. On the other hand, we have increasing competences in the recovery of raw materials, because we have many increasingly modern installations for recycling electronic waste and batteries, says Joanna Leoniewska-Gogola.
In Poland, two projects have so far obtained the status of a strategic project. One of them is the Rare Earth Elements Refining Plant in Puławy, which, as a result of processing, will produce, among others: oxides of neodymium, praseodymium, lanthanum and cerium. These are elements used in key industries such as renewable energy and electric vehicles. The second project is the Polvolt battery recycling plant in Zawiercie, implemented by Elemental Battery Metals. It focuses on recycling and recovery of strategic metals from lithium-ion batteries and catalytic converters. These include nickel, copper, cobalt, lithium, platinum group metals and manganese.
– We are also a manufacturer of batteries and various components, for example for electric cars, so we are a natural partner in the entire chain. There is also talk that Poland could become a recovery hub for Central and Eastern Europe. Looking at the entire system, I hope that recycling of waste and raw materials will become one of the pillars of the modern economy in Poland – emphasizes the Deloitte expert.
Poland is in the process of adapting its regulations to the requirements of the Act on Critical Raw Materials. Legislative work is underway on the draft act, which provides, among others, for: creating a single point of contact for strategic projects, maintaining their register, implementing a national program for the search for critical raw materials and a system for monitoring risks in supply chains. Currently, the mainly mined critical raw materials in Poland are copper, coking coal and helium.
Pursuant to it, the State Raw Materials Policy is also to be updated at least once every five years.
– The biggest challenge in the area of recycling in the coming years is the transition from strategy and laboratory research to the effect of industrial scale. To achieve this scale effect, we need several elements. Firstly, good eco-design of products, so that products containing critical raw materials are designed in a way that allows for their easy disassembly and recovery – says Joanna Leoniewska-Gogola. – On the other hand, we must have good collection systems so that these raw materials do not remain in drawers like old phones and laptops, but rather enter the system. The idea is that we obtain these raw materials in the same quality as primary raw materials and that recycling is economically competitive. Unfortunately, we have a problem with this now, the main reason is that recycling is too expensive.
According to experts, the coming years will determine whether Europe will build real independence in raw materials. In practice, this means not only greater security of supply for industry, but also more stable prices for the technologies on which the energy and digital transformation depend – from electric cars to consumer electronics.
