Commodity trader Andreas Kroll on report München: Our warehouse is a preparation for geopolitical risks
For some months now, we have been aware that we are speaking to an ever-growing audience. Even in Bavaria, which is sometimes a little sleepy with wind turbines, we have now been broadcasted. In yesterday’s report München, the CEO of Noble Elements, Andreas Kroll, explained the importance of technology metals and rare earths from China in just 30 seconds. The article summarized the central role of these commodities for the success of the energy transition very well. However, there was no time left to discuss the urgently needed solutions. – But they do exist!
Export bans due to global conflicts
In the program, the reporter asked whether China would impose export bans again. It had already done so once before in 2010, when prices shot through the roof. In view of global conflicts, Andreas Kroll believes this is possible. “We are preparing for this and this warehouse is part of this preparation,” he explains. After all, the shortage of important commodities is one of China’s ways of achieving political goals.
Chinese wind turbine contracts at dumping prices
Using the solar industry—which has been completely taken over by China—as an example, the report shows how the Middle Kingdom is controlling more and more parts of the supply chain. Wind energy is also affected: wind turbine contracts at dumping prices are making it increasingly unprofitable for German companies to enter that sector. The report concludes that the government must act. Unfortunately, we do not learn exactly how.
Economic efficiency is not the only benchmark
During the pre-interview for the program, Andreas Kroll mentioned several solutions for which there was ultimately no time left. For instance, a European task force could help secure resources quickly. Furthermore, governments would need to provide much more funding. China has invested over 19 billion euros in raw material projects along the Silk Road; we are far from that! Short-term economic thinking does not lead to sovereignty. Rather, Western states must create price guarantees for mines so that they can continue to produce even when China depresses prices, making it temporarily uneconomical.
Technology metals and rare earths for our defense
The overarching theme of the program was the energy transition. However, one must not forget that technology metals and rare earths are also vital for our defense capabilities. If Germany intends to rearm, we will need incredible quantities of these metals—perhaps a topic for one of the next programs.