This indicator reflects the relevance of a material to the European economy, taking into account its use across key industrial applications and its contribution to the value added of EU manufacturing sectors. The assessment takes into account the extent to which materials can be substituted in specific applications, provided this has not already been driven by cost considerations. Where substitutes are limited or perform less effectively, the economic importance of the material is correspondingly higher. There are an increasing number of new applications for which components containing critical and strategic raw materials are indispensable. This could mean that the criticality of these materials remains at least the same or even increases, even if it can be reduced elsewhere through substitution.

This indicator reflects the likelihood of disruptions in the supply of a given material to the European Union. It is primarily based on the concentration of global production, the governance context of producing countries, and trade-related factors. The assessment also considers the EU’s level of import reliance and identifies the most critical stage in the value chain (such as extraction, refining or processing), where supply risks are highest. Factors such as substitution and recycling are taken into account as they can help mitigate supply risks.