The European Union is in the process of selecting a contractor for a €9 million joint purchasing mechanism aimed at critical minerals and energy. Here are the key points:
Purpose of the Platform: The initiative is designed to consolidate purchasing power among EU member states to secure better prices and terms for critical minerals essential for the green transition, particularly in markets often influenced by China.
Bidders: Eight bidders are competing for the contract, including major consulting firms like Deloitte and PwC, as well as Germany’s Metalshub and Enmacc, which propose leveraging their existing trading platforms.
Timeline: The EU aims to finalize the contract by the end of the year and begin developing the platform for specific products in early 2025.
Industry Support: An online consultation indicated strong industry backing for the initiative, reflecting a desire for a demand aggregation and matchmaking platform for strategic raw materials.
Critical Raw Materials Act (CRMA): This project is part of the EU’s broader strategy under the CRMA, which seeks to enhance domestic production and reduce reliance on Chinese imports.
Challenges: Some companies already have established supply chains for key minerals like lithium and cobalt, raising questions about the platform’s utility for larger firms. Additionally, the complexity of sourcing specific grades of materials may complicate demand bundling.
Data Protection Concerns: Participants have expressed the need for confidentiality regarding procurement details to protect trade secrets.
Comparison to AggregateEU: The new platform is modeled after AggregateEU, a joint gas purchasing platform launched during the energy crisis, which has received mixed reviews regarding its effectiveness.
This initiative is a crucial step for the EU in strengthening its supply chain for critical minerals necessary for achieving net zero carbon emissions by 2050.