Renewable energies, batteries or robotics – in many key technologies Germany from imported raw materials dependent. “There is an urgent need for action for crisis-proof supply chains for nine critical minerals,” concluded the head of the Ifo Center for Foreign Trade, Lisandra Flach, from a study by her economic research institute published on Thursday.
These are cobalt, boron, silicon, graphite, magnesium, lithium, niobium, rare earths and titanium. “More sources of supply are needed here to make the supply chains more resilient,” says the expert. According to the study, supply chain disruptions are particularly problematic for the raw materials mentioned.
The reason: alternative sources could only be developed in the long term. This is a lesson from the recent supply emergencies in the course of the corona pandemic and crises like that Ukraine-War. And according to the information, seven of the nine particularly critical raw materials are China one of the largest suppliers on the world market – sometimes in a market-dominant position.
This speaks for a rapid strengthening of existing trade relations with other countries, including Thailand and Vietnam for the rare earths, but also Argentina, Brazil, United States and Australia for other critical commodities. For the majority of the 23 critical raw materials examined in the study, measures for more resilient supply chains are necessary, said foreign trade expert Flach.
Expand raw materials development within the EU
The Association of German Chambers of Industry and Commerce (DIHK) sees potential in better EU-wide coordination both in strategies for better distribution of raw materials within the EU and in the common trade policy to the outside world. “Many EU members have potential for critical raw materials,” said DIHK foreign trade chief Volker Treier. “Here, the development and processing of raw materials within the EU must be expanded.”
In addition, the EU must quickly help companies to develop new and sustainable sources of raw materials worldwide with trade and investment agreements. Especially the agreements with the Mercosur countries of South America, but also Indonesia and India are relevant to this and should be completed quickly.