Belgium, (Brussels Morning Newspaper) Thierry Breton, European Commissioner for Internal Market, called on European banks to support the energy transition.
Speaking at the roundtable of European banks, Breton stressed that financiers should provide more money to suppliers of raw materials needed for the energy transition, according to a Reuters report on Wednesday.
The EC is to present its Critical Raw Materials Act in March as part of efforts aimed at securing the EU’s supply of materials used in the production of electric vehicles including cobalt, lithium, manganese, and nickel, among others.
Breton warned that the EU is too reliant on imports from major producers such as China, especially when it comes to magnesium, which is used in the production of cars, electronics, and machinery.
He added that, besides excessive reliance on imports, the EU faces an expected “colossal” growth of demand driven by the green push. In addition, soaring energy prices in the EU are driving away energy-intensive industries such as refining.
The conflict in Ukraine is exacerbating the problem as Russia has been among Europe’s largest suppliers of key elements including aluminum, cobalt, copper, nickel and palladium.
Importance of raw materials
“I want you to invest in operations in the critical raw materials value chain,” Breton stressed at the roundtable with large European banks including the Deutsche Bank and Société Générale, among others.
“Sometimes you faced challenges: here in Europe, because of local opposition, long procedures or lack of economic case; or in the rest of the world, where you may be accused of supporting projects with low environmental and social standards,” he added.
The EU is lagging behind Canada and the US, which already adopted regulations aimed at securing materials needed for the energy transition.
EC President Ursula von der Leyen stated last week that the body will set up a new fund to provide subsidies to companies in the green sector to keep investors in the bloc.
Breton noted that the EC wants to include non-EU countries in the battery production chain.
“Of course, we can’t only invest in Europe… that is why we have established strategic partnerships on critical raw materials with Canada, Ukraine, Namibia and Kazakhstan,” Breton concluded.
