The government of Germany has made a decision to invest about €1 billion into critical raw materials, including in extraction, processing and recycling materials as it seeks to reduce dependency on China and others for energy transition goals.
According to sources cited by Bloomberg, a selection process will be established to determine which projects are eligible. Financing, via Germany’s state-owned KfW development bank, will consist of equity capital to make acquisitions of minority stakes.
Projects in Germany and abroad will “contribute to the security of supply of critical raw materials,” an Economy Ministry spokeswoman said. The ministry didn’t give details on how the state fund would be structured.
Critical raw materials include cobalt, copper, lithium, silicon and rare earth metals, which are needed to make microchips, wind turbines and batteries for electric vehicles as Europe sets its emission reduction goals for the near future.
As Germany’s parliament approves 2025 budget on Friday, the billion-euro fund is to be set up for four years. Investments will be coordinated with Italian and French initiatives in the raw materials sector.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
