The European Union’s Critical Raw Materials Act (CRMA) aims to address the growing demand and supply chain disruptions of critical raw materials essential for energy and digital transitions. While the Act emphasizes enhancing processing, recycling, and extraction activities within Europe, it does not address the significant spatial and environmental impacts of establishing these facilities. This issue is further complicated by our consumption patterns, which drive increased material use for a better quality of life, thus necessitating more extraction and processing activities.

This thesis examines these implications by focusing on neodymium, a rare earth element, and develops a circular supply chain for neodymium magnets in the Netherlands. Beyond addressing supply chain disruptions, the research critiques the current economic system by exploring different processing capacities within alternative growth paradigms.

The primary method used is scenario building, which illustrates four potential futures for the Netherlands. These scenarios are influenced by various factors such as processing capacities, economic conditions, societal values, and different supply chains. By comparing and evaluating these potential futures, their implications were understood. Key strategies from these extreme scenarios were then integrated to develop a national vision for the Netherlands. This vision is showcased through five strategic locations, each demonstrating the benefits of the vision.

This thesis highlights that the CRMA, which follows the green growth model, may lead to spatial and economic lock-ins, proving unsustainable in the long term under the current socio-economic framework. It emphasizes the necessity for a holistic approach that integrates environmental and spatial considerations, along with long-term planning, into policy-making to ensure socio-ecologically resilient supply chains. Additionally, while building capacities is seen as environmentally taxing this transition can be used to revitalize existing locations by addressing their current issues.