No consulting firm has been commissioned to review project proposals yet.
Germany’s heavy reliance on imported specialty raw materials has come under increasing scrutiny in recent years. Trade restrictions on critical elements, such as gallium and germanium, and, more recently, certain rare earths, have exposed vulnerabilities in the country’s industrial supply chains.
To mitigate these risks, the German government launched a Raw Materials Fund intended to support projects focused on the extraction, processing, or recycling of critical resources. These projects aim to diversify supply networks and would be eligible for state-backed financial assistance. While the fund was first announced in April 2023 and officially launched in October 2024, its implementation appears to be stalled. According to Spiegel Online, no consulting firm has yet been appointed to evaluate proposed investment projects. The tender process for this role began under the previous federal government, but a final decision was postponed until after the snap federal election, according to the outlet.
This is not the first setback for the Raw Materials Fund. The entire initiative was initially in jeopardy due to unresolved funding questions. Later, disagreements among responsible ministries further delayed progress.
The fund is backed by a budget of € 1 billion. Under the plan, the state-owned development bank KfW will make equity investments in raw material projects both domestically and abroad on behalf of the federal government. The focus is strictly on critical and strategically significant raw materials as defined in the EU’s Critical Raw Materials Act (CRMA).
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