Germany launches joint rare‑earth procurement plan with industry

Several German industry associations—including the VDA, ZVEI, VDMA, BDLI and BDI—are working with the Federal Ministry for Economic Affairs to create a joint procurement platform for critical raw materials. The plan, discussed at a meeting on 8 July, aims to bundle demand and act as a large‑scale buyer on the world market, drawing on a model used by Japan’s JOGMEC that combines geological expertise with risk‑capital investment.

Foreign Minister Johann Wadephul has called for a rapid top‑up of the government’s rare‑earth fund to as much as €1 billion. He warned, “China is already there, the United States is just arriving,” urging Germany not to wait while competitors secure supplies. The fund, supported by KfW, will enable direct stakes or guarantees in mining projects, with Brazil highlighted as a key source of critical metals for renewable‑energy and e‑mobility technologies.

The combined effort is intended to reduce Germany’s dependence on China for rare earths and other strategic minerals, providing financial backing for smaller firms and securing alternative supply chains for future technologies.