One billion euros for the supply security of our industry
The debate surrounding Robert Habeck’s one-billion-euro raw materials fund will enter its next phase in autumn, now with renewed momentum. The majority of the coalition government has already given the green light for this flagship project; only the FDP still needs to be convinced by Habeck. Perhaps we can offer some assistance in this endeavor.
Will the FDP approve the fund?
The fund’s financing consists of two halves. Habeck is permitted to draw the first part from the Climate and Transformation Fund (KTF) under his authority. The second part requires federal funds and thus the green light from the coalition partners. The Chancellor’s party, the SPD, and the Greens are already pulling together. According to Handelsblatt, Habeck could also convince the FDP. He should just not withdraw the funds from important FDP projects, such as the funds for the German Aerospace Center (DLR).
Theoretically, Habeck has many arguments
This is where Robert Habeck could start. Because aerospace also needs technology metals. Hafnium is used in rockets due to its heat resistance. There are also many other arguments for the fund that Habeck could put forward. Europe must increasingly prepare for collateral damage from the trade war between the USA and China. The recent announcement of export controls on gallium and germanium may only be the beginning. Furthermore, the EU Commission has stipulated that by 2030, no more than 70% of a raw material may be sourced from a single third country. With mine opening times of up to 10 years, even with immediate approval of the fund, it will be very tight to become independent of China so quickly. Rare earths are one example. More than 90% of these still come from the Middle Kingdom.
Other EU countries are also establishing raw material funds
Exploration is definitely the order of the day. Other European countries have already understood this. For example, France, together with private investors, has set up a two-billion-euro fund. Italy has also established a fund amounting to one billion euros. We reported (https://noble-bc.de/insights/warnschuss-china-kommt-robert-habecks-rohstoff-fonds-jetzt-doch). These countries are putting pressure on Germany. Robert Habeck’s French counterpart, Le Maire, is said to have told him that he could not understand why Germany, as the financially strongest state in the EU, remained inactive on this issue. What is emerging here is not only political pressure. It is the raw material awareness awakening in Europe due to the crises of our time. No one can resist this, not even the FDP.
Storage is currently the most important supply instrument
Storage will initially be the most important tool for securing industrial supply. Because China can at any time imitate Russia’s gas tactic with rare earths and technology metals to exert political pressure. Companies like Noble BC that store privately allow our companies to continue production. They also offer investors the opportunity to invest in the commodities of the future with attractive return opportunities.