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Voïta, T. “The Resilience of Critical Raw Materials Value Chains in France”, Policy Paper N°303, Jacques Delors Institute, October 2024

The increased French consumption of critical raw materials (CRMs) is too important for supplies to be secure in the medium to long term. These problems of access to CRM could slow down or even threaten the energy transition, which is very material- intensive, as we can, for instance, see in the manufacturing process of batteries or the extension of electricity grids. Lithium requirements could increase by a factor of 8.7 by 2040, graphite by a factor of 3.9 and copper by a factor of 1.5. France, which has major automotive groups, is seeking to accelerate its re-industrialisation and boost its international competitiveness, is therefore particularly exposed.

The Varin Report, which was submitted to the French government in early 2022 and has remained confidential, has led to several advances in the sector, including the creation of the French Observatory of Mineral Resources for Industrial Sectors (OFREMI), a fund dedicated to CRMs and managed by InfraVia Capital, and the strengthening of French CRMs diplomacy. At the same time, France’s industrial policy is
being strengthened, notably through France 2030 and the creation of gigafactories for batteries, but also with projects to reopen mines (for lithium, in the Allier region, for example).

However, these ambitions and policies come up against limits of all kinds: technological (Chinese manufacturers have a strategic lead), financial, but also environmental and social, with mines and CRMs having major impacts.

There are several options open to France:

• Securing the offer through :
  • International partnerships, signed by the European Union (EU) and France – considering that these must be conditional on compliance with European environmental, social and governance standards, particularly in terms of human rights for Indigenous Peoples,
  • The development of domestic mining and refining activities, which entails significant environmental damage and raises questions about the acceptability to local populations and the uses of the CRMs extracted,
• Limiting the increase in demand, or even eventually reducing current demand… :
  • In raw materials. via recycling policies and, more generally, the circular economy, but also by switching to less critical materials,
  • In raw and secondary materials by improving eco-design, an ambitious innovation policy to improve the efficiency of raw materials and reduce their use, and sobriety policies.

The main recommendations of this report are as follows:

• Involve the National Commission for Public Debate (Commission nationale du débat public, iCNDP), strengthen democratic debate and transparency, and reinforce democratic processes on mining issues.
• Implement budgetary and non-budgetary measures to boost the competitiveness of French and European industries.
• Accelerate the implementation of policies aimed at reducing French needs, i.e. :
  • Strengthen existing legislation on the circular economy and recycling.
  • Introduce a concept of eco-conditionality linked to the use of CRMs in support of industries linked to CRMs.
  • Launch a debate on the use of CRMs and promote sobriety.
• Promote European cooperation.
• Strengthen ESG requirements for domestic projects and strategic partnerships.