Germany Faces Critical Delays in Unlocking Local Rare Earth Element Resources Amid Rising Import Risks

Germany and broader Europe hold substantial deposits of rare earth elements essential for industries such as automotive manufacturing, medical technology, and military applications. However, despite these significant local resources, Germany remains heavily dependent on imports—primarily from China, which controls about 70% of global rare earth production and 90% of processing. This dominance has escalated risks due to China's export restrictions, which have sharply increased prices, notably for elements like Neodymium.

David Bender, co-leader at Heraeus Remloy, has collected 350 tons of rare earth materials through recycling efforts but struggles to meet demand since manufacturers prefer cheaper Chinese supplies. Experts, including Jens Gutzmer, criticize the German government's inaction despite years of warnings about the fragility of current supply chains and the geopolitical dangers posed by overreliance on China.

There are viable deposits within Germany and across Europe, such as in Sweden, yet bureaucratic obstacles and price instability have hindered the development of domestic extraction. The German government has pledged funding for mining projects abroad, but efforts to enhance recycling and utilize local sources remain insufficiently supported. Advocates like Bender call for regulatory changes, such as introducing quotas that require a percentage of materials used in production to come from European sources, to stimulate local industries and reduce dependence on imports.

While these rare earth elements are indispensable for modern technologies—from electric vehicle motors to defense equipment—the slow political response has left Germany vulnerable. The current scenario underscores an urgent need for coordinated policy and industrial action to unlock domestic resources and build resilient supply chains amid ongoing geopolitical tensions.