Gallium and germanium for semiconductors or solar cells, lithium or cobalt for batteries, platinum group metals for electrolysis: Rare earths & Co. are essential in German factory floors, especially in future industries. The supply of such raw materials seemed secured for a long time but is increasingly under pressure. Reasons include the geographical concentration of extraction and refining, export policy interventions, geopolitical tensions leading to supply disruptions, long lead times, or high price volatility. Additionally, due diligence duties, limited transport/processing capacities, or the global demand boom due to energy transition and digitalisation increase obstacles.

Holding a smartphone means holding rare earths – and consequently a piece of global raw material dependency

Consistent strategy needed

In this situation, the economy sees a need for a consistent raw materials strategy. For companies, it is challenging to comprehend that the federal government recommends countries with high investment risks as sources, where fulfilling the – government-imposed – supply chain due diligence obligations is extremely difficult. Or: Although Germany has numerous deposits for construction and industrial minerals, domestic extraction is severely restricted – by lengthy approval procedures, increasing land competition, and environmental regulations.

Therefore, DIHK advocates the use of coordinated instruments to secure raw material supply. Together with the Chambers of Industry and Commerce, the German Chambers Abroad in resource-rich countries, and relevant DIHK specialist committees, it has developed recommendations for action in four areas.

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The complete DIHK position paper with details is available here:

For secure, affordable, and sustainable raw material supply (PDF, 1 MB) (only available in German)