German Foreign Minister urges rapid increase in rare earth raw material fund

German Foreign Minister Johann Wadephul is calling for a rapid expansion of funding for raw material reserves, specifically focusing on rare earths and critical minerals. Following a trip to South America, Wadephul stressed the urgency for Germany and Europe to secure these vital resources.

"China is already there, the United States of America is just arriving," Wadephul stated after a meeting with his Brazilian counterpart Mauro Vieira in Brasília. "Therefore, we must not linger in the waiting room for too long, but must move forward." The German government aims to use the raw material fund to participate directly or provide guarantees for mining projects. This strategy seeks to offer German companies alternative supply partners and lessen their dependence, particularly on China.

The fund is intended to have a volume of up to one billion euros. The state development bank KfW has already invested in initial projects through this fund. Brazil is Germany's most important trading partner in South America, though China has been Brazil's largest trading partner since 2009. Brazil possesses significant deposits of critical metals and minerals essential for developing future technologies, including renewable energy and electromobility.

Wadephul's call highlights a growing global competition for resources crucial to the green and digital transitions. By investing in these reserves and diversifying supply chains, Germany aims to bolster its industrial resilience and technological independence.

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China is already there, the United States of America is just arriving. Therefore, we must not linger in the waiting room for too long, but must move forward.