Germany’s Efforts to Secure Critical Resources Face Delays
The German government has allocated one billion euros for the development of investments in critical resources and rare earths, yet the state-owned KfW Bank is still unable to support companies that aim to explore new sources of these essential materials.
According to a report by the German news magazine Spiegel, the reason for the delay is the lack of a consulting firm to review investment projects. A tender process, launched several months ago, has yet to be completed, the Federal Ministry of Economics explained.
The resource fund was initiated by the previous government in the fall, with the aim of selecting a consultant to evaluate projects, but leaving the final decision to the new government. However, even after more than a month in office, Economy Minister Katherina Reiche has yet to make a decision.
The urgency of the situation is highlighted by the ongoing dispute between the US and China over the supply of rare earths, which are crucial for the production of electric vehicles. “German companies must finally have the support to become independent of China in securing these essential resources” criticized Franziska Brantner, the Green party’s chair, who negotiated the resource fund under Economy Minister Robert Habeck.