Critical Raw Materials: How Industry and Politics Want to Secure Supply
An industry alliance has presented a paper on the diversification, domestic extraction, and recycling of critical raw materials. The issue is essential.
(Image: Rebel Red Runner/ Shutterstock.com)
The supply of so-called critical raw materials is one of the important fields of action to secure the competitiveness and resilience of Germany as an industrial location. This was agreed upon by the partners of the Alliance for the Future of Industry (BĂĽndnis Zukunft der Industrie, BZdI) at a meeting with Federal Minister for Economic Affairs Katherina Reiche (CDU) on Tuesday.
The BZdI emphasized that in addition to reducing bureaucracy and securing energy prices, the raw material supply is crucial for industrial strength. The BZdI is an association of politics, employer associations, industry, and trade unions.
As a result of the meeting, the partners presented a position paper on securing critical raw materials. In it, they outline concrete strategies for strengthening domestic value creation and reducing dependencies, for example on rare earth elements. These mainly come from China and are subject to export restrictions. The focus is on diversifying supply sources, expanding domestic extraction and processing capacities, and promoting recycling.
For immediate implementation, the alliance calls for the consistent application of existing political instruments such as the EU Regulation on Critical Raw Materials and the rapid deployment of the raw materials fund launched in 2024. Further key points include accelerated planning and approval procedures, the reduction of bureaucracy, and the creation of competitive investment conditions.
Ambitious Circular Economy
In the area of international partnerships, long-term supply contracts, investments in resource-rich countries, and the use of free trade agreements are intended to deepen cooperation in infrastructure, further processing, and technology. An ambitious circular economy, driven by market-based incentives, the promotion of recycling technologies, and research into substitution and efficient raw material use, is considered a main pillar. In general, the BZdI relies on closer cooperation between the state, industry, and research through joint regulatory structures, working groups, and roadmaps to strengthen diversification, risk minimization, and competitiveness.
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Given the importance of raw material policy, reliable and sustainable sources must be secured, Reiche emphasized. BDI President Peter Leibinger urged that despite positive signals from the black-red coalition, fundamental, growth-effective structural reforms and bureaucracy reduction are essential. IG Metall Vice Chairman JĂĽrgen Kerner underscored the seriousness of the situation in light of tens of thousands of lost jobs. In addition to competitive energy prices and protection against unfair competition, he calls for a secure supply, for example through the raw materials fund and professional market surveillance. All parties involved assured that the paper must be implemented quickly and consistently.
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