Italy’s ‘Critical’ Raw Materials Procurement Boost

Italy looks set to adopt a series of measures aimed at boosting the procurement and reuse of “critical” raw materials, according to recent reports. 

The Italian government, led by Prime Minister Giorgia Meloni, has made domestic material extraction a priority to ensure businesses are not reliant on high-risk, unreliable imports.

Procurement projects deemed "urgent" by Minister

Its estimated that Italy can procure 16 out of 34 of the EU’s “critical” raw materials itself, without relying on imports. 

The list includes lithium, commonly used in EV batteries, and baryte, used in drilling fluid, and could lead to tangible advantages for Italian industries. 

The reports follow the Critical Raw Materials Act (CRMA) in 2023, when the European Parliament aimed to increase and diversify the supply of these materials and strengthen the circularity of raw materials in-line with the Net-Zero Industry Act (NZIA).

Now, Business and Made in Italy Minister Adolfo Urso promotes a new draft to boost the procurement of these raw materials. In it, he states that these procurement projects to extract, process or cycle critical raw materials are “non-deferrable and urgent.”

Despite working within the framework of the CRMA, which ensures the industry can compete with powerhouses such as the United States or China, the Italian decree may not hold up under the NZIA. 

It is set to allow exploration permits for the procurement of raw materials, without an environmental impact assessment beforehand.

Supply chains can also expect a boost

The draft will also trigger the reopening of some closed or abandoned mining sites, largely situated in the Alps, Tuscany and Sardinia.

Companies looking to take advantage of this shift can expect to pay the state between five to seven percent of their output value.

Alongside this news the long-awaited government-backed “Made in Italy” fund, which aims to support the country’s key supply chains, will be established with US$1.07bn of state investment. 

There are also plans to raise an additional billion from other non-public sources- totaling an approximate US$2bn supply chain boost.

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