EU and Ukraine sign preliminary agreement on key raw materials

The European Union and Ukraine on Tuesday signed a memorandum of understanding (MoU) covering critical raw materials and batteries.

The move is part of the European Commission’s action plan on critical raw materials announced in September to strengthen supplies of vital materials for sectors such as aerospace, defense, electronics, automotive and renewable energy, as well as energy-intensive industries and the health sector.

European Commission Vice President Maros Sefcovic and Ukrainian Prime Minister Denys Shmygal signed the MoU in Kiev during an EU-Ukraine conference.

“Securing a sustainable supply of raw materials is an essential prerequisite for achieving green and digital transition goals,” Sefcovic reported before the visit to Kiev.

“Developing cooperation with the EU is of strategic importance to us and will help integrate mineral supply chains and strengthen strategic resilience during post-pandemic recovery,” Shmygal said.

The EU last year updated its list of critical raw materials to include bauxite, lithium, titanium and strontium. China provides 98 percent of the EU’s supply of rare earth elements.

To power electric car batteries and energy storage alone, the EU estimates it will need 18 times more lithium by 2030 and up to 60 times more by 2050.