The German government has designated approximately €1 billion ($1.1 billion) for investments in raw materials as part of its strategy to reduce dependency on key mineral producers, particularly from certain regions. This move is driven by the need to secure critical minerals and decrease reliance on external sources.
A selection process will be established to identify eligible projects, covering aspects such as extraction, processing, and materials recycling. The funding for these projects will be channeled through Germany’s state-owned development bank, primarily in the form of equity capital to acquire minority stakes in relevant ventures.
The projects, both within Germany and abroad, are expected to enhance the security of the supply chain for critical raw materials. However, specific details regarding the structure of the state fund have not been disclosed.
Recent disruptions in global supply chains triggered by various factors, coupled with the need to secure access to critical materials, have underscored the importance of reducing dependency on external sources.
Critical raw materials, including specific minerals and metals, play a vital role in the production of various technologies. The billion-euro fund, which has been approved for four years, will coordinate its investments with similar initiatives in other countries within the raw materials sector. Policymakers will prioritize mineral projects classified as critical under relevant regulations.
Experts emphasize that diversifying raw material supplies should be a top priority, promoting supply chain resilience and security. While this fund represents a step in the right direction, further measures may be necessary.
The state-owned development bank is expected to provide further details about its role in managing the project. In recent times, there has been a global recognition of the importance of securing access to critical raw materials, ensuring the stability and resilience of supply chains.
