Skip to main content

A recent study by IW Consult at the German Economic Institute and Fraunhofer Systems and Innovation Research (ISI) has highlighted Germany’s reliance on imports of rare earths, copper, and lithium and their significance to the economy.

The study reveals that nearly one-third of the added value in Germany’s manufacturing sector is linked to goods containing copper, while lithium-containing goods contribute to one-tenth, and those containing rare earths make up over a fifth.

Industries such as automotive and electronics heavily rely on these raw materials, with car manufacturers and suppliers being particularly vulnerable.

China currently dominates the rare-earth market, with other potential sources like Greenland, Canada, and Sweden remaining underexplored. Despite efforts to diversify supply chains, over 80% of the market is controlled by the top three suppliers.

A substantial portion of Germany’s imports of these critical materials comes from China, posing a significant risk due to potential trade restrictions and export controls imposed by the Chinese government.

The study also underscores the importance of Russia and Chile as key suppliers of copper and lithium, respectively, highlighting the diverse range of countries involved in Germany’s supply chain.

Matthias Wachter from the Federation of German Industries (BDI) warns that dependence on Chinese raw materials surpasses that of Russian gas, emphasizing the vulnerability of supply chains to geopolitical tensions and export regulations.

Cornelius Bähr of the German Economic Institute (IW Köln) emphasizes the need for diversification, domestic production, and recycling to mitigate supply chain risks and ensure resilience.

Fritzi Köhler-Geib, chief economist at KfW, stresses the importance of securing the entire supply chain to support Germany’s green and digital transformation, despite initial costs.

In the face of looming threats to industrial production and climate ambitions, Wachter calls for urgent action to safeguard supply security and prevent potential economic setbacks.

Bähr warns that failure to address these vulnerabilities could jeopardize Germany’s industrial prowess and hinder progress towards a sustainable future, highlighting the urgent need for strategic planning and investment.

Leave a Reply

The MINEX Forum 

Was founded in 2005 to stimulate international cooperation in the field of sustainable development of mining and metallurgical production in Eurasian countries. Over the years, the MINEX Forum has become one of the most authoritative international events in Europe and Central Asia. The forum’s ecosystem brings together thousands of specialists from hundreds of companies and organisations around the world. 

www.minexforum.com  

Advantix Ltd 

MINEX Forum is organised under International Trademark owned by Advantix Ltd. Founded in the UK in 2002 Advantix specialises in the organisation of international events in the field of international finance, mining & metallurgy, critical raw materials, industrial digitalisation, the transition to low-carbon production, etc. 

www.advantix.com  

MINEX Eurasia 202320222021 |  2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012