What changed between the draft committee report and the plenary report

Removed:Recital 5: (5) It is essential to strengthen the risk preparedness of the large companies that are identified by the Commission, it is essential that their obligations are strengthened, and therefore large companies should be required to take measures to mitigate their vulnerabilities including reducing the use of strategic raw material, by improving material efficiency, diversifying their strategic raw material supply chain, considering secondary raw materials, or to substituting the strategic raw material or by replenishing of stocks of strategic raw materials, including, where appropriate, through the joint purchasing mechanism referred to in Regulation (EU) 2024/1252; the Commission should be able to receive the information regarding their compliance necessary for an effective monitoring and ensure they are prepared in case of supply disruption. The Commission should specify the mitigation measures that large companies should adopt in case of vulnerabilities, it should be able to do so by means of delegated acts. The Commission could issue guidance and appropriate tools for how companies should fulfil reporting obligations, in consultation with Member States and stakeholders, to facilitate compliance in a practical manner.

Added:REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Removed:Recital 8: (8) The increased use of recovered raw materials would support the development of the circular economy and allow for a more resource-efficient use of raw materials from permanent magnets, while reducing the Union’s dependency on raw materials from third countries. Therefore, including manufacturing waste could help establish a European recycling industry in the short term. The recognition of manufacturing waste recycled materials complements, the recovery of post-consumer waste by ensuring that manufacturers can improve short-term resource efficiency while maintaining strong incentives to build and expand end-of-life collection and recycling system. However, reutilisation of materials, such as rework, regrind or scrap generated in the permanent magnet manufacturing process, which can be reclaimed within the same process that generated the material, do not constitute waste and should therefore not be seen as part of the recycled content shares of permanent magnets under Regulation (EU) 2024/1252. Target trajectories for each raw material should fully consider the actual recycling potential for manufacturing and post-consumer waste, taking into account Union-originated waste to ensure ambitions are technically achievable and drive genuine investment in post-consumer waste. Future increases in recycled content targets should be reflected in the increase of post-consumer waste shares rather than raising manufacturing waste shares.

Added:amending Regulation (EU) 2024/1252

Removed:Recital 8 a (new): (8a) The Union faces a potential shortage of rare earth elements, which are critical for the production of permanent magnets and essential for strategic industries. Ensuring that recyclable materials remain within the Union will enhance industrial resilience and reinforce the security and reliability of the Union’s supply chains. In this context, the Commission could by way of a thorough assessment that takes due account of its international obligations and partnerships with third countries, propose restrictions on the export of scraps and waste of permanent magnets from the Union. Such export restrictions should be used judiciously and targeted to specific material streams. By leveraging trade data, the Commission could identify the streams where secondary material losses are most significant, ensuring that any restrictions are proportionate and effective.

Removed:Recital 8 b (new): (8b) In order to accelerate investment in extraction, processing and recycling capacities for critical raw materials within the Union, it is necessary to address significant market risks, including price volatility and lengthy project investment cycles associated with such projects. Price-stabilisation mechanisms, including financial hedging mechanisms such as Contracts for Difference could provide greater revenue certainty for project developers, while ensuring that public support remains proportionate and responsive to market conditions. Member States and the Commission should explore the use of such instruments to support Strategic Projects under Regulation (EU) 2024/1252, including in relation to Important Projects of Common European Interest (IPCEI) projects in accordance with Union’s State Aid rules.

Added:THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Removed:Recital 8 c (new): (8c) Strategic raw materials are often subject to concentrated supply chains and geopolitical risks that may lead to sudden supply disruptions. In order to strengthen the Union’s preparedness and resilience, improved coordination among Member States regarding strategic stocks of such materials is necessary. The joint purchasing mechanism established under Regulation (EU) 2024/1252 could, where appropriate, facilitate the coordinated establishment or replenishment of strategic stocks by participating undertakings and Member States.

Added:Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114, thereof,

Removed:Recital 8 d (new): (8d) Whereas promoting material efficiency, circularity, and technology diversification can mitigate supply risks, enhance strategic autonomy, and support a sustainable industrial ecosystem, it is appropriate to facilitate the development and deployment of technologies, manufacturing processes, and promote product designs that minimise the use of critical raw materials, foster substitution and recycling under the current and future competitiveness policy frameworks and funds.

Added:Having regard to the proposal from the European Commission,

Removed:Recital 8 e (new): (8e) National and European research and innovation programmes play a key role in strengthening the Union’s resilience in the supply of critical and strategic raw materials. European research and innovation programmes and dedicated funding instruments could support efforts to diversify the supply of such materials and to develop innovative solutions across their value chains. Particular attention should be given to the development of circular business models, substitution and material efficiency, with the objective of reducing the overall demand for critical and strategic raw materials in strategic technologies.

Added:After transmission of the draft legislative act to the national parliaments,

Removed:Recital 8 f (new): (8f) Achieving higher recycling rates requires significantly improving the identification, separate collection and treatment of products, components and waste streams containing critical raw materials. The evaluation of Regulation (EU) 2024/1252 in 2028 should therefore assess whether additional Union measures are necessary to ensure the effective recovery of critical raw materials, in particular the necessity of the binding nature of the benchmarks currently sets out in Regulation (EU) 2024/1252. Moreover, a substantial share of such materials is currently lost due to insufficient collection. In particular, the Commission should, as part of the evaluation of further measures to increase the collection, sorting and processing of waste referred to in Regulation (EU) 2024/1252, assess the necessity and feasibility of establishing Union-level waste collection targets for products, components or waste streams containing critical raw materials.

Added:Having regard to the opinion of the European Economic and Social Committee,

Removed:Recital 8 g (new): (8g) Strengthening the resilience of the Union’s critical raw materials value chains is essential for both economic security and the Union’s security and defence capabilities. Defence-related demand can unlock investments in strategic projects across the critical raw materials value chain and act as a catalyst generating positive spillovers for dual-use technologies and industrial ecosystems. The Union should therefore leverage relevant financial instruments and programmes such as the forthcoming European Defence Industry Programme to de-risk and accelerate Strategic Projects.

Added:Having regard to the opinion of the Committee of the Regions,

Removed:Regulation (EU) 2024/1252

Added:Acting in accordance with the ordinary legislative procedure,

Removed:Article 1 – paragraph 1 – point -1 (new), Article 2 – paragraph – point 32 a (new): (-1) in Article 2, the following point is inserted: / (32a) ‘manufacturing waste’ means the materials or objects rejected during the manufacturing process such as regrind material or scrap, which cannot be re-used as an integral part in the same process and need to be recycled;

Added:Whereas:

Removed:Regulation (EU) 2024/1252

Added:(1) Since the entry into force of Regulation (EU) 2024/1252 on 23 May 2024, the Commission has been collecting data and information from stakeholders and Member States concerning the implementation of it. However, as highlighted by the European Court of Auditors in Special Report 04/2026 on critical raw materials, the Union’s raw materials policy still lacks sufficient data and monitoring to fully assess supply chain vulnerabilities and progress towards its strategic objectives. Strengthening data collection, transparency and monitoring across the critical raw materials value chain is therefore essential and should support the 2028 review of Regulation (EU) 2024/1252.

Removed:Article 1 – paragraph 1 – point 1, Article 7 – paragraph 3 – subparagraph 2: The first such cut-off date shall be no later than 24 August 2024. The Commission shall set cut-off dates at least two times per year. / The Commission may also open additional calls for applications for targeted projects, which shall take into account the whole value-chain approach and their contribution to programme objectives, where appropriate;

Added:(2) The Union’s excessive reliance on imports from a limited number of third countries creates strategic vulnerabilities and exposes European industries to supply disruptions and external political pressure. Access to secure and sustainable critical raw materials is essential for the Union’s objectives of clean and digital transition as set out in the Clean Industrial Deal. They are also essential components for the Union’s industries, in all areas including defence. The development of Strategic Projects and the scaling of critical raw materials value chains within the Union also depends on the availability of adequate enabling infrastructure and a coherent regulatory framework that avoids creating disproportionate barriers to the development of such projects within the Union. The Union should therefore take into account the full range of essential raw materials and infrastructure requirements associated with those strategic objectives and ensure policy coherence between this Regulation and future Union initiatives. Due to the current geopolitical situation the Union’s supply and security of critical raw materials is put at risk and therefore, the current framework should be strengthened, while ensuring compliance with applicable social and environmental standards and democratic processes. The Commission should monitor and oversee compliance and support Member States in the implementation of those standards.

Removed:Regulation (EU) 2024/1252

Added:(3) Under Regulation (EU) 2024/1252, the Commission is required to set up calls for application for Strategic Projects. In order to ensure predictability for applicants while maintaining sufficient administrative flexibility, the Commission should set cut-off dates for such calls at least twice per year. Establishing a minimum frequency of calls ensures regular opportunities for project promoters to submit applications and to respond to evolving programme needs, increased demand for project recognition, and timely assessment of applications. In addition, the Commission should be able to organise additional targeted calls, where appropriate. Such calls should take into account the whole value-chain approach that links different stages of the value chain, including extraction, processing, refining, manufacturing, recycling and downstream demand. Moreover, the Commission should in parallel take all necessary measures to streamline and further develop its procedures in order to accelerate the processing of applications, without compromising the quality of the assessment.

Removed:Article 1 – paragraph 1 – point 2 – point d, Article 24 – paragraph 4: 4. If significant vulnerabilities to supply disruptions are detected as a result of the risk assessment referred to in paragraph 2, large companies as referred to under paragraph 1 shall take efforts to mitigate those vulnerabilities including reducing the use of strategic raw materials, by improving material efficiency, diversifying its strategic raw materials supply chains, considering secondary raw materials, or substituting the strategic raw materials or by replenishing of stocks of strategic raw materials, including, where appropriate, through the joint purchasing mechanism referred to in Regulation (EU) 2024/1252;

Added:(4) Under Regulation (EU) 2024/1252, Member States are required to identify large companies by May 2025 and within 12 months of each update of the list of strategic raw materials pursuant to Article 3(3). Nevertheless, large companies that use strategic raw materials can operate in more than one Member State. To avoid a duplication of the identification of these large companies by the various national administrations and to prevent a risk of fragmentation of the Single Market, it should be for the Commission to identify these large companies operating in the Union. In the course of determining which companies qualify as large, the Commission should notify the Member States where those companies are active, as well as to facilitate coordination with national authorities. The Commission should be able to issue guidance and appropriate tools for how companies should fulfil reporting obligations, in consultation with Member States and stakeholders, to facilitate compliance in a practical manner.

Removed:Regulation (EU) 2024/1252

Added:(5) It is essential to strengthen the risk preparedness of the large companies that are identified by the Commission, it is essential that their obligations are strengthened, and therefore large companies should be required to take measures to mitigate their vulnerabilities, including reducing the use of strategic raw materials, by improving material and resource efficiency, by diversifying their strategic raw material supply chain, including switching to Union-based or Union-owned suppliers, prioritising secondary raw materials, or by substituting the strategic raw material or by building up of stocks of strategic raw materials, including, where appropriate, through the joint purchasing mechanism referred to in Regulation (EU) 2024/1252. The Commission should be able to receive the information regarding their compliance necessary for an effective monitoring and ensure they are prepared in case of supply disruption. The Commission should specify the range of possible mitigation measures that large companies should adopt in the case of vulnerabilities, considering all types of measures, including measures related to circularity, resource efficiency and substitution of strategic raw materials, it should be able to do so by means of delegated acts. When specifying risk mitigation measures pursuant to this Regulation, the Commission should take into account the availability and costs of alternative sources of supply, the opinion of the CRMA Board, and the specific characteristics and applications of different critical raw materials. The delegated acts should provide tailored risk mitigation measures from which large companies should select those most appropriate to their specific circumstances, while ensuring that such measures do not impose a disproportionate burden on Union companies relative to the strategic objective pursued.

Removed:Article 1 – paragraph 1 – point 2 – point f, Article 24 – paragraph 5a: 5a. The Commission may request large companies referred to in paragraph 1 to explain how they comply with the obligations set out in this Article. They shall provide that information no later than 30 days after receiving the request from the Commission. The Commission may support companies with guidance, training, and appropriate tools to facilitate compliance.

Added:(5a) Whereas promoting material efficiency, circularity, and technology diversification can mitigate supply risks, enhance strategic autonomy, and support a sustainable industrial ecosystem, it is appropriate to facilitate the development and deployment of technologies, manufacturing processes, and promote product designs that minimise the use of critical raw materials, foster substitution and recycling under the current and future competitiveness policy frameworks and funds. Particular attention should be given to the development of circular business models, substitution and material efficiency, with the objective of strengthening resource resilience and reducing strategic dependencies in critical raw materials value chain, including by moderating demand growth for critical and strategic raw materials in strategic technologies and reducing dependence on specific materials through substitution and design optimisation.

Removed:Regulation (EU) 2024/1252

Added:(5b) The International Energy Agency estimates that clean energy technologies could account for approximately 40% of global copper demand growth by 2040. Electricity networks in particular will drive global annual copper demand from 5 Mt to nearly 10 Mt by 2040. At the same time, both current and projected demand are expected to exceed available supply, highlighting copper supply constraints as a growing concern for distribution and transmission of electricity sectors. The Commission should therefore ensure that the list of products covered under this Regulation is reviewed and adapted to include product categories whose demand is expected to raise by a greater likelihood of electrification, so as to reflect evolving supply pressures across the full value chain.

Removed:Article 1 – paragraph 1 – point 2 – point f, Article 24 – paragraph 5b – subparagraph 2: The Commission shall base such risk mitigation measures on an assessment of the available information on supply risks, demand and supply, price volatility, the trade flows and strategic partnerships between the Union and third countries, including measuring their contribution to the Union’s security of supply, and the potential obstacles to trade in critical raw materials and shall specify the maximum shares of reliance on a single third country in the supply chain of critical raw materials.;

Added:(6) Large companies should, as part of that risk assessment, map in which countries the strategic raw materials they use are extracted, processed and recycled from, as well as the mapping of directly or indirectly owned or controlled entities from which they source strategic raw materials, and analyse the factors that could affect their supply and assess their vulnerabilities to supply disruptions. Such factors may include the lack of transparency, environmental safeguards, public participation, including insufficient engagement and acceptance of local and indigenous communities, as well as human and labour rights. Therefore, companies should, where relevant, take measures to improve access to information, to foster inclusive stakeholder engagement, and to uphold environmental standards. In order to have a clear understanding of their vulnerabilities, they should also map the supply chain of the components containing strategic raw materials. To reinforce their preparedness large companies should report on their risk assessment to the companies’ board of directors or management board. In that respect, where relevant, large companies concerned could set up internal monitoring capacities and processes to carry out those duties.

Removed:Regulation (EU) 2024/1252

Added:(7) The Commission should continue to monitor the situation and the risk preparedness of large companies, ensuring their readiness in case of disruption of their supply chains. To that end, and when it decides so, the Commission can request information from large companies on their compliance and mitigation measures as required by this Regulation. The Commission should provide guidance to companies on how to perform supply chain mapping and risk assessments, with the aim of aligning both with the information the Commission may request.

Removed:Article 1 – paragraph 1 – point 3, Article 28 – paragraph 1 – introductory part: 1. From two years after the date of entry into force of the implementing act referred to in paragraph 2, any natural or legal person that places on the market magnetic resonance imaging devices, wind energy generators, industrial robots, motor vehicles, light means of transport, cooling generators, heat pumps, electric motors including where electric motors are integrated in other products, automatic washing machines, tumble driers, microwaves, vacuum cleaners, dishwashers, hard disk drives, transducers, loudspeakers, drones for civil use or motorised toys or any other relevant product which contains permanent magnets shall ensure that those products bear a conspicuous, clearly legible and indelible label indicating:;

Added:(8) The increased use of recovered raw materials would support the development of the circular economy and allow for a more resource-efficient use of raw materials from permanent magnets, while reducing the Union’s dependency on raw materials from third countries. Therefore, including manufacturing waste could help establish a European recycling industry in the short term. The recognition of pre-consumer recycled materials complements, the recovery of manufacturing waste by ensuring that manufacturers can improve short-term resource efficiency while maintaining strong incentives to build and expand end-of-life collection and recycling systems. However, the reutilisation of materials, such as rework, regrind or scrap generated in the permanent magnet manufacturing process, which can be reclaimed within the same process that generated the material, do not constitute waste and should therefore not be seen as part of the recycled content shares of permanent magnets under Regulation (EU) 2024/1252. Target trajectories for each raw material should fully consider the actual recycling potential for manufacturing and post-consumer waste, taking into account Union-originated waste to ensure ambitions are technically achievable, and evidence-based, proportionate to the specificities of each raw material and product category taking into account the availability, recyclability of each material and drive genuine investment in post-consumer waste.

Removed:Regulation (EU) 2024/1252

Added:(8a) The collection, sorting and recycling of products containing critical raw materials, in particular permanent magnets, represent a significant untapped source of secondary strategic raw materials within the Union. Achieving higher recycling rates requires improved identification, separate collection and treatment of products, components and waste streams containing such materials, including through the development of adequate collection and recycling infrastructure and a coordinated action at Union level to facilitate the cross-border movement of waste streams containing critical raw materials and remove regulatory and logistical barriers to their aggregation. The evaluation in 2028 of Regulation (EU) 2024/1252 should therefore assess, on the basis of technical and economic feasibility, whether additional Union measures are needed to ensure their effective recovery, including the assessment of a possible introduction of binding benchmarks currently set out in that Regulation. As a substantial share of those materials is still lost due to insufficient collection, the Commission should also assess the necessity and feasibility of establishing Union-level collection targets for relevant products, components and waste streams. For electronic equipment, progress could be achieved by replacing the existing weight-based recovery, recycling and reuse targets in Directive 2012/19/EU with material-specific targets. Any minimum recycled content requirements adopted pursuant to this Regulation should be proportionate, evidence-based and supported by a realistic trajectory for the development of Union recycling capacity, including appropriate transitional periods adapted to the specificities of each strategic raw material and product category. The Commission and Member States should also ensure the timely and coordinated development of collection and sorting infrastructure to support domestic recycling capacity and avoid the export of recoverable materials to third countries. In addition, research into extraction and processing technologies that reduce environmental and health impacts is needed to facilitate the development of an Union-based critical raw materials sector. The Commission should promote and support collaborative and open research in this area, with the aim of benefitting the sector as a whole.

Removed:Article 1 – paragraph 1 – point 4 – point a, Article 29 – paragraph 1: 1. By 24 May 2027 or two years from the entry into force of the delegated act referred to in paragraph 2, whichever is later, any natural or legal person that places on the market products referred to in Article 28(1) which incorporate one or more permanent magnets referred to in Article 28(1), point (b)(i), (ii) and (iii), and for which the total weight of all such permanent magnets exceeds 0,2 kg shall make publicly available on a free-access website the share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from manufacturing and post-consumer waste, including the shares of such waste produced within the Union, present in the permanent magnets incorporated in the product.;

Added:(8b) Ensuring that recyclable materials remain within the Union will enhance industrial resilience and reinforce the security and reliability of the Union’s supply chains. In this context, and in accordance with Regulation (EU) 2015/479, the Commission could by way of a thorough assessment that takes due account of its international obligations and partnerships with third countries, propose restrictions on the export of scraps and waste of permanent magnets from the Union. Such export restrictions should be used judiciously and targeted to specific material streams. By leveraging trade data, the Commission could identify the streams where secondary material losses are most significant, ensuring that any restrictions are proportionate and effective.

Removed:Regulation (EU) 2024/1252

Added:(8c) Strengthening the resilience of the Union’s critical raw materials value chains is essential for both economic security and the Union’s security and defence capabilities. Defence-related demand can unlock investments in strategic projects across the critical raw materials value chain and act as a catalyst generating positive spillovers for dual-use technologies and industrial ecosystems. The Union should therefore leverage relevant financial instruments and programmes such as the European Defence Industry Programme to de-risk and accelerate Strategic Projects.

Removed:Article 1 – paragraph 1 – point 4 – point b, Article 29 – paragraph 2: 2. By three months from the date of entry into force of Regulation .../... (procedure 2025/0385 COD), the Commission shall adopt a delegated act in accordance with Article 38 to supplement this Regulation by establishing rules for the calculation and verification of the share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from manufacturing and post-consumer waste, including the shares of such waste produced within the Union, present in the permanent magnets incorporated in the products referred to in paragraph 1 of this Article. Based on the public available information published under paragraph 1 of this Article, the Commission shall propose a trajectory for the shares of manufacturing and post-consumer waste, as well as Union-originated waste targets for each strategic raw material.;

Added:(9) To attain the objectives set in the RESourceEU Action Plan, Regulation (EU) 2024/1252 should therefore be amended accordingly, while ensuring compliance with applicable environmental and ILO conventions.

Removed:Regulation (EU) 2024/1252

Added:(10) Regulation (EU) 2024/1252 marked an important step towards stronger Union engagement in critical raw materials. To fully achieve its objectives and ensure its effective implementation, it is essential that adequate investments and financial resources are mobilised at Union level. Since the entry into force of that Regulation, the Commission has presented the MFF 2028-2034 package, which includes the European Competitiveness Fund, and has announced the establishment of the Critical Raw Materials Centre (the ‘Centre'). The Commission should present an ambitious proposal for the Centre, including building on the existing expertise in the Union ecosystems, in the first half of 2026. Given the urgency, the proposal could appropriately proceed based on available evidence and a targeted assessment, without requiring a comprehensive impact assessment, while fully respecting the integrity of the legislative procedure. To become more competitive, more resilient and to guarantee security of supply, the European Competitiveness Fund should include a dedicated Critical Raw Materials envelope entrusted to the Centre for its implementation. In addition, the European Investment Bank should play a key role in implementing Union-supported financial instruments in line with the objectives of Regulation (EU) 2024/1252. Given the high risks, capital intensity, price volatility and lengthy investment cycles associated with critical raw test materials projects, a broad toolbox of Union-level instruments is essential.

Removed:Article 1 – paragraph 1 – point 4 – point c, Article 29 – paragraph 3: 3. After the entry into force of the delegated act adopted pursuant to paragraph 2, and in any event by 31 December 2031, the Commission shall adopt delegated acts supplementing this Regulation by laying down minimum shares for neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from, manufacturing and post-consumer waste, including the shares of such waste produced within the Union, or any combination thereof that must be present in the permanent magnet incorporated in the products referred to in paragraph 1.;

Added:(10a) The Centre should be a self-standing Union agency with a time-unlimited mandate including the implementation of the budget set out under the European Competitiveness Fund. The achievement of the missions of the Centre should rely on the widest possible use of financial instruments including equity, quasi-equity, Contracts for Difference, and Production-linked incentives. Its mandate should comprise the entire value chain of critical raw materials, spanning resource intelligence and exploration, extraction, processing and refining, recycling and substitution of critical raw materials. The Centre should support Strategic Projects under Regulation (EU) 2024/1252 and relevant Important Projects of Common European Interest, through a broad range of financial and market-based instruments, facilitate cooperation between producers and users, monitor supply chain risks, and help coordinate strategic stockpiling and joint purchasing initiatives in cooperation with Member States and relevant stakeholders. The Centre's engagement should have a particular focus on promoting a stable and diversified European market for critical raw materials, to identify potential strategic international projects and engage with international partners, support the development of Strategic projects within the Union, as well as on strategic raw materials with particular attention to the materials most relevant for the digital, clean energy, and defence transitions.

Removed:Regulation (EU) 2024/1252

Added:(10b) The Centre should be tasked with creating a European market and pricing infrastructure for the trade of critical raw materials. To enhance transparency in critical raw material markets, reduce dependence on price-setting mechanisms outside the Union, and mitigate risks of market manipulation, the establishment of a critical raw materials price indices index should be encouraged to provide market participants with a transparent and reliable, market driven reference price. Such an index should be based on robust market data, including anonymised transaction data collected through dedicated trade platforms or data aggregation mechanisms,

Removed:Article 1 – paragraph 1 – point 4 – point d, Article 29 – paragraph 3 – subparagraph 3 – point a: (a) The existing and forecasted availability of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from manufacturing and post-consumer waste sources as well as Union recycling capacity, with the aim of fostering investments in post-consumer waste;

Added:HAVE ADOPTED THIS REGULATION:

Added:Article 1 Amendments to Regulation (EU) 2024/1252

Added:Regulation (EU) 2024/1252 is amended as follows:

Added:(-1) Article 2 is amended as follows:

Added:(a) the following point is inserted:

Added:‘(32a) ‘manufacturing waste’ means the materials or objects rejected during the manufacturing process such as regrind material or scrap, which cannot be re-used as an integral part in the same process and need to be recycled;’;

Added:(b) the following points are inserted:

Added:‘(52a) ‘motorised toy’ means a product that falls within the scope of Article 2 of Regulation (EU) 2025/2509 and that contains an electric motor of any rated output level;

Added:(52b) ‘loudspeaker’ means a device designed to convert electrical signals into audible sound’;

Added:(1) in Article 7(3), the second subparagraph is replaced by the following:

Added:‘The first such cut-off date shall be no later than 24 August 2024. The Commission shall set cut-off dates at least twice per year.

Added:The Commission may also open additional calls for applications for targeted projects addressing specific missing links, bottlenecks or critical needs identified in strategic raw materials value chains taking into account the whole value-chain approach and their contribution to programme objectives, where appropriate.’;(2) Article 24 is amended as follows:

Added:(a) paragraph 1 is replaced by the following:

Added:‘1. By [P.O.: please insert date corresponding to the date of entry into force of this Regulation plus 2 months] and within six months of each update of the list of strategic raw materials, the Commission, in close cooperation with Member States, shall identify the large companies operating in the Union that use strategic raw materials to manufacture batteries for energy storage and e-mobility, equipment related to hydrogen production and utilisation, equipment related to renewable energy generation, aircrafts, traction motors, heat pumps, equipment related to data transmission and storage, mobile electronic devices, equipment related to additive manufacturing, equipment related to robotics, drones, rocket launchers, radar, satellites or advanced chips.

Added:The Commission is empowered to adopt delegated acts in accordance with Article 38 to supplement the list set out in the first subparagraph by adding additional product categories of applicable large companies taking into account relevant geopolitical and economic developments.’;

Added:(b) the following paragraph 1a is inserted:

Added:‘1a. The Commission shall inform the large companies it has identified under paragraph 1 of such identification and of their obligations under this Article and shall provide guidance regarding compliance with those obligations, including by providing relevant information to the Member States in which the company operates to facilitate compliance.

Added:The Commission may provide further support to companies through appropriate tools such as providing relevant information on alternative sources of supply, available Union’s support instruments and diversification opportunities.’;

Added:(c) paragraph 2 is replaced by the following:

Added:‘2. Large companies as referred to in paragraph 1 shall, by nine months of the notification by the Commission of their identification and at least every three years thereafter, and to the extent the required information is available to them, carry out a risk assessment of their raw materials supply chain of strategic raw materials, including:

Added:(a) a mapping of the supply chain of components containing strategic raw materials;

Added:(b) a mapping of countries in which the strategic raw materials they use are extracted, processed or recycled;

Added:(ba) a mapping of the ownership of the facilities in which the strategic raw materials they use are extracted, processed or recycled;

Added:(c) an analysis of the factors that might affect their supply of strategic raw materials;

Added:(d) an assessment of their vulnerabilities to supply disruptions.’;

Added:(d) paragraph 4 is replaced by the following:

Added:‘4. If significant vulnerabilities to supply disruptions are detected as a result of the risk assessment referred to in paragraph 2, large companies as referred to under paragraph 1 shall take measures to mitigate those vulnerabilities, including by reducing the use of strategic raw materials, by improving material and resource efficiency, diversifying its strategic raw materials supply chains, including switching to Union-based or Union-owned suppliers, prioritising secondary raw materials, or substituting the strategic raw materials, where such substitution is technically and economically viable or by building up or maintaining of stocks of strategic raw materials, including, where appropriate, through the joint purchasing mechanism referred to in Regulation (EU) 2024/1252.’;

Added:(e) paragraph 5 is replaced by the following:

Added:‘5. Large companies as referred to in paragraph 1 shall present to their board of directors or management board the results of the risk assessment referred to in paragraph 2.’;

Added:(f) the following paragraphs 5a and 5b are inserted:

Added:‘5a. The Commission may request large companies referred to in paragraph 1 to explain how they comply with the obligations set out in this Article. They shall provide that information no later than 60 days after receiving the request from the Commission. Information submitted by large companies pursuant to this Article shall be treated as confidential in accordance with Article 46. Where the large company is a defence contractor and the information requested pursuant to this paragraph relates specifically to strategic raw materials used mainly in the manufacturing of defence products it shall, by way of exception, provide the requested information to the Member State where it is established. The Member State shall collect the information and share it with the Commission. If disclosure of some specific elements to the Commission would jeopardise essential security or defence interests of the Member State, it may withhold those specific elements of that information, by informing the Commission of its decision and stating the reasons.’

Added:▌5b. The Commission is empowered to adopt a delegated act in accordance with Article 38 to supplement this Regulation by specifying the risk mitigation measures that the large companies referred to in paragraph 1 of this Article are to take when significant vulnerabilities to supply disruptions are detected in accordance with paragraph 4 of this Article. The Commission shall consider all types of mitigation measures, including taking into account measures related to circularity, resource efficiency and substitution of strategic raw materials.

Added:The Commission shall base such risk mitigation measures on an assessment of the available information on supply risks, demand and supply, price volatility, the trade flows and strategic partnerships, bilateral agreements, and projects, including related Global Gateway investment projects, between the Union and third countries, with measuring their contribution to the Union’s security of supply as well as, their role in fostering sustainable, mutually beneficial and resilient partnerships with partner countries and coherent external action and the potential obstacles to trade in critical raw materials and shall specify the maximum shares of reliance on a single third country in the supply chain of critical raw materials.

Added:When specifying risk mitigation measures pursuant to this paragraph, the Commission shall take into account the availability and costs of alternative sources of supply and the opinion of the CRMA Board. The measures shall not impose a disproportionate burden on Union companies relative to the strategic objective pursued.

Added:The Commission shall consider the specific characteristics and applications of different strategic critical raw materials and ensure that the delegated act provides tailored risk mitigation measures from which large companies shall select reasonable, proportionate and effective mitigation measures, tailored to the significant vulnerabilities to supply disruptions identified pursuant to this Article.’;

Added:(g) paragraph 6 is deleted;

Added:(2a) in Article 25, paragraph 6 is replaced by the following:

Added:‘6. To ensure the protection of the essential security interests or the security of supply of the Union or of its Member States, entities shall be excluded from participating as suppliers or service providers of a given strategic raw material to the system established pursuant to this Article, if they are:

Added:(a) established in a third country that holds more than 40% of the global manufacturing capacity in extraction, processing or recycling of the corresponding strategic raw material; or

Added:(b) directly or indirectly owned or controlled by, or acting on behalf or at the direction of natural or legal persons, entities or bodies established in a third country that holds more than 40 % of the global manufacturing capacity in extraction, processing or recycling of the corresponding strategic raw material.

Added:The exclusions set out in the first subparagraph, points (a) and (b) should not apply to entities from third countries with which the Union has an agreement establishing a free trade area or a custom union, or a Strategic Partnership.

Added:6a. Where the Commission or the Critical Raw Materials Board determines, on the basis of available data, that one of the following situations has occurred or is imminent, the Commission may activate temporary support measures appropriate to the situation, including price stabilisation mechanisms, financial compensation instruments such as contracts for difference or production-linked incentives, or demand aggregation measures in favour of alternative suppliers:

Added:(a) a significant and sudden increase in prices or a disruption in the supply of a strategic raw material that places Union-based projects and undertakings at a competitive disadvantage; or

Added:(b) prices of a strategic raw material are set at artificially low levels by a supplier holding a dominant position in global supply, threatening the economic viability of extraction, processing or recycling projects established in the Union or supported by Union financial instruments.

Added:6b. Where, in the situation referred to in paragraph 6a, point (a), the Commission or the Critical Raw Materials Board additionally determines that no viable alternative suppliers exist that would allow the mechanism to fulfil its objective of diversifying and stabilising supply and aggregating demand at Union level, it shall authorise the participation of suppliers or service providers otherwise excluded under paragraph 6 for the duration of the situation referred to in paragraph 6a, point (a).

Added:The Commission shall publish a reasoned decision specifying the nature, scope and duration of the measures or authorisation granted under this paragraph, and shall inform the CRMA Board accordingly. Such measures and authorisations shall be proportionate to the identified situation and shall be regularly reviewed. If suppliers or service providers otherwise excluded under this paragraph are admitted to the system in accordance with this paragraph, purchasing from other suppliers shall be prioritised. Where an authorisation is granted pursuant to this paragraph, the Commission shall simultaneously launch a call for expressions of interest to identify potential alternative sources of supply within the Union or in third countries’;

Added:(3) Article 28 is amended as follows:

Added:(a) in paragraph 1, the introductory wording is replaced by the following:

Added:‘1. From two years after the date of entry into force of the implementing act referred to in paragraph 2, any natural or legal person that places on the market, including via online sales or through other means of distance sales, magnetic resonance imaging devices, wind energy generators, industrial robots, motor vehicles, light means of transport, cooling generators, heat pumps, electric motors including where electric motors are integrated in other products, automatic washing machines, tumble driers, microwaves, vacuum cleaners, dishwashers, hard disk drives, transducers, loudspeakers, drones for civil use or motorised toys shall ensure that those products bear a conspicuous, clearly legible and indelible label or, alternatively, a digital label providing the information indicating:’;

Added:(b) the following paragraph is inserted:

Added:‘1a. By way of derogation from paragraph 1, the following products shall be exempt from the labelling requirements laid down in that paragraph where the total mass of permanent magnets incorporated in the product does not exceed the following thresholds:

Added:(a) 3 grams for hard disk drives and loudspeakers;

Added:(b) 6 grams for motorised toys;

Added:(c) 15 grams for drones for civil use;

Added:(d) 20 grams for transducers.

Added:Hard disk drives, loudspeakers, motorised toys, drones for civil use and transducers incorporating exclusively ferrite permanent magnets of total mass not exceeding 20 grams shall not be subject to the requirements laid down in paragraph 1.’;

Added:(c) paragraph 12 is replaced by the following:

Added:‘12. The Commission is empowered to adopt delegated acts in accordance with Article 38 to supplement this Regulation by adding other relevant products or product groups containing permanent magnets to the list set out in paragraph 1 of this Article, and by providing a list of Combined Nomenclature codes in accordance with Annex I to Council Regulation (EEC) No 2658/87 and product descriptions corresponding to the products referred to in paragraph 1 of this Article with the aim of facilitating the work of customs authorities in relation to those products and the requirements set out in this Article and in Article 29 of this Regulation. The obligations arising from the addition of possible new products pursuant to this paragraph shall apply from two years after the entry into force of the relevant delegated act.’;

Added:(4) Article 29 is amended as follows:

Added:(a) paragraph 1 is replaced by the following:

Added:‘1. By 24 May 2027 or two years from the entry into force of the delegated act referred to in paragraph 2, whichever is later, any natural or legal person that places on the market, including via online sales or through other means of distance sales, products referred to in Article 28(1) which incorporate one or more permanent magnets referred to in Article 28(1), point (b)(i), (ii) and (iii), and for which the total weight of all such permanent magnets exceeds 0,2 kg shall make publicly available on a free-access website or in its product passport, when available, the share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from manufacturing and post-consumer waste, including, where feasible, and based on available information, the shares of such waste produced within the Union, present in the permanent magnets incorporated in the product.’;

Added:(b) in paragraph 2, the first subparagraph is replaced by the following:

Added:‘2. By December 2026, the Commission shall adopt a delegated act in accordance with Article 38 to supplement this Regulation by establishing rules for the calculation and verification of the share of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from manufacturing waste and from post-consumer waste, including the shares of such waste produced within the Union, present in the permanent magnets incorporated in the products referred to in paragraph 1 of this Article.’;

Added:(c) in paragraph 3, the first subparagraph is replaced by the following:

Added:‘3. After the entry into force of the delegated act adopted pursuant to paragraph 2, and in any event by 31 December 2031, the Commission shall adopt delegated acts supplementing this Regulation by laying down separate minimum shares for neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from, manufacturing waste and post-consumer waste, including the shares of such waste produced within the Union, or any combination thereof that must be present in the permanent magnet incorporated in the products referred to in paragraph 1. Based on the publicly available information published under paragraph 1, the Commission shall propose a separate trajectory for the volumes of manufacturing waste and post-consumer waste, as well as Union-originated waste targets for permanent magnets.

Added:The minimum shares referred to in the first subparagraph shall ensure and support a feasible and progressive increase over time of post-consumer waste used in permanent magnets, with a view to prioritising the recovery of materials from end-of-life products. Those minimum shares shall be based on a prior assessment of impacts, taking into account:’;

Added:(d) in paragraph 3, third subparagraph, point (a) is replaced by the following:

Added:‘(a) The existing and forecasted availability of neodymium, dysprosium, praseodymium, terbium, boron, samarium, nickel and cobalt recovered from manufacturing waste and post-consumer waste sources as well as Union recycling capacity, with the aim of fostering investments in post-consumer waste.’;

Added:(5) Article 38 is amended as follows:

Added:(a) in paragraph 2, the first sentence is replaced by the following:

Added:‘2. The power to adopt delegated acts referred to in Article 3(2), Article 4(2), Article 5(3), Article 6(2), Article 24(5b), Article 28(12), Article 29(2) and (3), Article 31(1) and (8), and Article 34(1) shall be conferred on the Commission for a period of eight years from 24 June 2024.’;

Added:(b) in paragraph 3, the first sentence is replaced by the following:

Added:‘3. The delegation of power referred to in Article 3(2), Article 4(2), Article 5(3), Article 6(2), Article 24(5b), Article 28(12), Article 29(2) and (3), Article 31(1) and (8) and Article 34(1) may be revoked at any time by the European Parliament or by the Council.’;

Added:(c) paragraph 6 is replaced by the following:

Added:‘6. A delegated act adopted pursuant to Article 3(2), Article 4(2), Article 5(3), Article 6(2), Article 24(5b), Article 28(12), Article 29(2) or (3), Article 31(1) or (8) or Article 34(1) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period may be extended by two months at the initiative of the European Parliament or of the Council.’.

Added:Article 2 Entry into force

Added:This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Added:This Regulation shall be binding in its entirety and directly applicable in all Member States.

Added:Done at,

Added:For the European Parliament For the Council

Added:The President The President