Germany should address dependence on imports of key raw materials, industry says

Germany’s dependence on imports of raw materials from abroad is at its highest ever, according to the country’s industry association BDI, and must be urgently addressed as part of an industrial strategy. The information was reported by the international news outlet Clean Energy Wire.

According to BDI chief Siegfried Russwurm, the high level of dependence on imports poses a risk to both decarbonisation and digitalisation.

“Secure access to raw materials is a matter of national security, especially at a time when autocratic governments have begun using their resources for political blackmail,” Russwurm said, adding that a strictly market-based approach cannot work in such an environment.

To ensure Germany and Europe do not fall behind in building global supply chains, measures are needed, including domestic mining, projects to process key raw materials, the development of international partnerships and increasing recycling rates.

According to a 2022 analysis commissioned by Germany’s Federal Ministry for Economic Affairs and Climate Action, Germany imports 39 of the 46 most important raw materials needed to achieve strategic goals in energy and industry. Half of these raw materials come from China.

BDI said that if China were to immediately halt lithium exports, the damage to the German automotive industry alone would exceed 40 billion euros. China accounts for half of Germany’s lithium imports this year. In 2014, its share was just under 20%.

“Politicians must do everything in their power to avert such a scenario,” Russwurm added, saying that the risks are entirely clear, but the response to them is too slow.