Germany's dependence on critical raw materials
Today’s ruling by the Federal Constitutional Court means that Germany is becoming dangerously dependent on critical raw materials. “We had high hopes for the raw materials fund set up by Federal Economics Minister Robert Habeck. As the second largest trader of rare earths and technology metals in Germany, we know very well how dependent we are on China, which dominates up to 90 percent of the rare earths market,” said Andreas Kroll, Managing Director of Noble Elements Metallhandelsgesellschaft mbH on Wednesday in Berlin.
Due to the emergency situation during the COVID-19 pandemic, the federal government had retroactively increased the 2021 budget by 60 billion euros in the form of a credit authorization. The coalition government wanted to use the money for the Climate and Transformation Fund (KTF) and reallocated it retroactively in 2022 with the approval of the Bundestag. Habeck wanted to draw on KTF funds for the raw materials fund. The court’s ruling has made this impossible.
With the geopolitical turning point, raw materials policy has become a central issue for the federal government. There is great concern that China could use this dependence as leverage in the event of a conflict. “Now new solutions must be sought quickly and the raw materials fund must be financed from other sources,” Kroll continued.
Background Noble Elements GmbH
The company was founded in 2014 and trades in rare earths and technology metals and is the second largest importer in the German-speaking region. Noble Elements procures the metals and supplies the industry and other institutional buyers. With its subsidiary Noble BC, private investors also have the opportunity to invest in these lucrative products and markets. The products are stored in the duty-free warehouse Freeport Berlin-Brandenburg. The entire metal business, from purchasing to storage, is recorded transparently and tamper-proof on a public blockchain.
Rare Earths Background
Rare earths are 17 chemical elements that occur in the Earth’s crust in combination with other metals. Very large deposits are required to produce these elements, which occur only in minute quantities. After they have been dissolved from the ore and freed from impurities, the various rare earths must also be separated from one another. In the separation process used to date, alkalis or acids are used, followed by high-temperature chlorination.
Contact
Peter Hoenisch
Tel. +49 172 7072733
p.hoenisch@noble-elements.de