December 12, 2024: Brazil and Argentina have signed up to a proposed landmark deal to supply critical raw materials to battery manufacturers in Europe.

European Commission president Ursula von der Leyen said on December 6 the supply of critical raw materials formed part of an agreement with the two Mercosur nations, along with Paraguay and Uruguay, that extended to a range of business and trade opportunities.

On batteries, von der Leyen said the EU-Mercosur partnership agreement would help ensure an efficient, reliable and sustainable flow of critical raw materials for the resource-poor EU’s green transition.

Materials from Brazil are set to include natural graphite, niobium, manganese and vanadium, in addition to lithium from Argentina.

The agreement, if endorsed by the European Parliament and European Council, will also pave the way for EU firms to invest in the development of local industries in the countries to process critical raw materials.

The deal would also promote corporate social responsibility standards, the EU said.

Analysis published in May 2023 said the EU needed to invest more than €13 billion ($14 billion) by 2040 to guarantee just a quarter of key battery materials from European sources to power its green energy agenda.

The study by European electrochemical and thermal energy storage research center, CIC energiGUNE, assessed the impact of the Critical Raw Materials Act published by the European Commission in March 2023.

Source: https://ec.europa.eu/commission/presscorner/api/files/attachment/880031/Factsheet%20EU-Mercosur%20Trade%20Agreement%20-%20Critical%20raw%20materials.pdf