The German government is adjusting the funding allocated to a crucial resource fund managed by the state-owned KfW development bank, according to reports from “Der Spiegel”. The fund, designed to support companies investing in the extraction of essential raw materials like lithium and rare earth elements, will receive a revised budget of €13.38 million for 2025.
This represents a significant reduction compared to the initial proposal drafted by the previous government, which envisioned a budget of €29 million – more than double the current allocation. The revised budget is currently included in the draft budget plan for 2025.
The Green Party has voiced concerns over the cutback, particularly given the current geopolitical climate. Green Party leader Franziska Brantner underscored the potential risks of dependence on foreign suppliers, referencing recent actions and statements by Chinese President Xi Jinping as an illustration of potential vulnerabilities in the global supply chain.
The parliamentary budget committee is scheduled to discuss Minister for Economic Affairs Katherina Reiche’s budget in August. The ministry maintains that the allocated funds are sufficient to cover all necessary expenditures for 2025 and that the overall framework of the resource fund, capped at a total of €1 billion, remains in place. The adjustment reflects ongoing prioritization within the budget planning process.