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BDI/Roland Berger: Dependence on raw materials threatens billions in losses

(dpa) Lithium is an important raw material for e-mobility. However, a large portion of it comes from China - which worries the German industry. The dependence is also significant for other raw materials. The BDI is now sounding the alarm.

Dependent on China: For lithium and rare earths, the domestic industry relies on imports, especially from China. Recycling, such as at the Mercedes-Benz plant in Kuppenheim, is therefore increasingly important. | Photo: Mercedes-Benz
Dependent on China: For lithium and rare earths, the domestic industry relies on imports, especially from China. Recycling, such as at the Mercedes-Benz plant in Kuppenheim, is therefore increasingly important. | Photo: Mercedes-Benz
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Johannes Reichel

The Federation of German Industries (BDI) sees Germany's dependency on raw materials from abroad as larger than ever before - and warns of billions in losses. For instance, if Chinese lithium exports were to be stopped, the German economy could face a value-added loss of up to 115 billion euros - 15 percent of industrial value-added. This was revealed in a study by the BDI and the consultancy Roland Berger, which the association presented at a congress in Berlin. The automotive industry is particularly affected, as it needs lithium for electric cars. "Politics must do everything to prevent such a worst-case scenario," said BDI President Siegfried Russwurm.
 

Dependency on a Variety of Raw Materials

Germany imports half of its lithium products from China – compared to 18 percent in 2014. The People's Republic dominates the battery production for electric vehicles. "Germany and Europe are at risk of losing the global competition for strategically important raw materials," warned Russwurm. According to the study, Germany is heavily reliant on foreign sources not only for lithium. In 2023, the dependency was high to very high for 23 critical raw materials, and it has increased for ten of these materials. These include rare earths, which are also largely imported from China. 

The authors call for reducing dependencies by sourcing raw materials from more supplier countries. Additionally, domestic raw material extraction and processing must be strengthened. For some raw materials, recycling technologies could be developed to establish a circular economy.

Translated automatically from German.
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