Study by Roland Berger and Federation of German Industries (BDI) reveals a slight increase in import dependencies. This week, the BDI Raw Materials Congress in Berlin focuses on the state of Germany’s raw material sovereignty.
Germany’s industry relies heavily on mineral resources—many of which need to be imported, often from just a few producing countries. This dependency poses an increasing risk to supply security, growth, and prosperity, as highlighted in a recent study by consulting firm Roland Berger and the Federation of German Industries (BDI).
The authors cite the potential disruption of China’s role as the main supplier of lithium and lithium products like batteries as an example. Such a disruption could lead to a loss of up to €115 billion in value creation, including €42 billion in the automotive industry alone. Moreover, Germany’s reliance on raw material imports has actually grown in recent years, despite the widespread awareness of the issue and efforts to reduce it, explains BDI President Siegfried Russwurm. For instance, 32% of rare earth imports came from China in 2014, but by 2023 this figure had risen to 69%. Similarly, Germanium imports from China increased from 23% to 40%.
To address this challenge, the authors recommend various measures, including more domestic raw material extraction and processing as well as diversifying supplier countries. In building new partnerships, existing initiatives such as the EU’s Global Gateway strategy for promoting foreign infrastructure projects should be utilized more effectively. Additionally, the circular economy and technological innovations in recycling need to be strengthened. New forms of raw material sourcing, such as deep-sea mining and space mining, should also be explored to maintain international competitiveness.
With Germany’s import dependency on raw materials increasingly in focus due to ongoing global crises, more studies have been addressing the issue. Just in September, the BDI warned of potential deindustrialization and called for “bold measures” to secure critical resources. The association’s Raw Materials Congress, taking place today, will examine Germany’s progress on raw material sovereignty two years after the so-called “Zeitenwende.”
More on Europe’s Critical Mineral Security: In May, the EU-wide Critical Raw Materials Act came into force, aiming to reduce known unilateral import dependencies. Together with Adamas Intelligence and TRADIUM GmbH, we have explored both the opportunities and the gaps and open questions within this legislative framework.
Photo: iStock/SHansche