Get Ready, Germany: Shoring Up Our Rare Earths Supply Chain is Crucial - Veronika Grimm Speaks Out
Strategist Grimm advocates for a plan on handling rare earth elements
In an all-out push for a national strategy on rare earths, economist Veronika Grimm has sounded the alarm, citing China's hold on these essential elements for high-tech industries, electromobility, wind power, and defense goods.
Grimm called for an enhanced role for the National Security Council, stating, "We've recognized the problem. The Raw Materials Fund and the National Raw Materials Strategy are steps in the right direction, but implementation must speed up, bureaucratic hurdles must fall, and a comprehensive perspective, taking into account geopolitics, energy trade, and trade relationships, needs to be established."
According to Grimm, China's strategic control over the processing of critical raw materials has raised serious concerns. A disruption in the supply chain could abruptly halt production, resulting in considerable delays or stoppages.
To address this looming issue, she advocates for several strategic moves:
- Building Strategic Partnerships: Collaborating with financially robust countries, notably Canada, Australia, and Chile, can help in securing reliable sources for rare earths.
- Fostering European Purchasing Cooperatives: By working together, European countries can pool their purchasing power, effectively breaking China's monopoly.
- Construction of Strategic Reserves: Establishing storage facilities for critical materials can offer a safety net against supply chain disruptions.
- Emphasis on Recycling: Implementing novel methods for recycling rare earths from waste materials can help increase the availability of these vital elements.
In light of potential trade talks between the USA and China, the rare earths sector will undoubtedly be a hot topic. Until then, German industries are advised to closely monitor their supply chains, particularly due to Chinese export controls.
The push for a national strategy on rare earths is a crucial step towards securing our future production and fostering a strategic and sustainable future for Germany and Europe as a whole.
[1] wdr.de/deutschland aktuell[2] tagesschau.de[3] tuebingen.de/georg-august-universitaet-hochschule[4] handelsblatt.com
Tags: Rare Earths, China, Europe, Strategic Partnerships, Recycling, National Security Council
- It's imperative for small and medium-sized undertakings throughout Europe, including Germany, to pay close attention to the national strategy on rare earths, as increased partnerships with financially robust countries like Canada, Australia, and Chile could ensure a secure supply of these critical elements for high-tech industries, electromobility, wind power, and defense goods.
- With an emphasis on industry, finance, and business, European countries would significantly benefit from collaborative efforts to form purchasing cooperatives, construct strategic reserves, and implement innovative recycling methods for rare earths, thereby mitigating the impact of potential supply chain disruptions caused by China's strategic control over the processing of critical raw materials.
