Ifo Institute: Critical Raw Materials Crucial for Germany’s Future Viability

by | 30. Jun 2022 - 15:26 | Economy

New study provides overview of supply risks and recommends action.

On behalf of the Chamber of Industry and Commerce for Munich and Upper Bavaria, the ifo Institute has prepared a study on Germany’s dependence on raw material imports. According to the study, there is an urgent need for action in particular for nine critical minerals or groups of minerals: cobalt, boron, silicon, graphite, magnesium, lithium, niobium, rare earths and titanium.

These raw materials are essential for key technologies such as electromobility, renewable energies and fuel cells. However, the study concludes that Germany is dependent on a few supplier countries in this area. There is as yet untapped potential for diversifying supply chains, for example by intensifying existing trade relations with countries rich in raw materials such as Argentina, Brazil, the USA and Australia. Countries such as Vietnam, Thailand and Myanmar also offer the opportunity to reduce Germany’s dependence on rare earths imported from China. There is still a lot to do for the German economy and, above all, for politics, as a recent working paper by the German Federal Academy for Security Policy attested (we reported).

Photo: iStock/SHansche

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