Precious Metals in Peril: Economist Grimm Urges Action on Depleting Rare Earth Reserves
Strategy Proposed by Grimm for Handling Rare Earth Elements
In an exclusive chat with "Focus," economist Veronika Grimm speaks out about the looming crisis in the global supply of rare earths. With China dominating the market, Grimm advocates for a politically charged, swift, and obstacle-free national strategy.
Vocal about the urgency, Grimm criticizes the slow pace of implementation in current initiatives such as the Raw Materials Fund by KfW and the National Raw Materials Strategy. "The crux of the problem isn't simply having funds—it's developing a holistic, geopolitically savvy approach that encompasses strategic partnerships, energy trading, and trade relations," she asserts. Fearing a peak in production could arrive sooner than expected, Grimm encourages the development of the national strategy within the framework of the newly established National Security Council, housed in the Federal Chancellery.
Grimm: Production Can Quickly Grind to a Halt
China has astutely consolidated control over the processing of critical raw materials, warns Grimm. Essential for high technology, electromobility, wind power, and defense goods, rare earths are integral to numerous contemporary applications. If supply lines are disrupted, Grimm predicts production could be temporarily halted or severely delayed.
Fueling supply chain dependency, China has implemented export controls on rare earths during trade disputes. Negotiations between the USA and China, scheduled in London, will likely dwell on access to rare earths as a contentious topic. In this context, Grimm raises the necessity of bolstering continental European purchasing cooperations, reserving strategic reserves of critical raw materials, and fostering partnerships with countries such as Canada, Australia, or Chile.
Remedying the Problem
A potential solution involves diversifying supply sources by venturing into partnerships with resource-rich nations like Chile. Grimm also raises the possibility of domestic resource exploration and investing in advanced mining technologies to uncover hidden reserves. Diversifying the supply chain and encouraging multiple suppliers is another solution to combat production delays or disruptions.
Germany should invest in processing technologies, such as advanced separation methods, to boost its processing capabilities. Grimm advocates for collaborating with companies like Chemetall and fostering partnerships with firms like Redwood Materials to enhance recycling technologies for rare earths from electronic waste.
Strengthening supply chain resilience is crucial. Building strategic reserves of rare earths, diversifying industries' supply chains by engaging multiple suppliers, and implementing circular economy practices could mitigate the impact of supply disruptions.
Legislative support, regulatory incentives, and international cooperation can drive progress in research, development, and collaboration. A clear understanding of these challenges and the benefits of a comprehensive and fast-tracked national strategy will ensure Germany remains a leader in the age of technology.
Source: ntv.de, as/dpa
- Rare Earths
- China
- National Security
- Supply Chain Management
- Circular Economy Practices
- Recycling and Recovery
- Investment in Processing Technologies
[Enrichment Data]- Diversification of supply sources - International partnerships - Domestic mining and exploration- Investment in processing technologies - Advanced separation technologies - Innovation in recycling- Strengthening supply chain resilience - Strategic stockpiling - Supply chain diversification- Promoting circular economy practices - Recycling and recovery policies
Implementing a comprehensive national strategy for rare earths in Germany requires a multifaceted approach that addresses current challenges, such as supply chain disruptions due to China's export controls. Such a strategy should aim to diversify supply, invest in processing technologies, strengthen supply chain resilience, and promote circular economy practices. This approach would secure a more resilient and diversified supply chain for the country.
- Given the rise in China's dominance over the processing of critical raw materials, particularly rare earths, which are essential for high technology, electromobility, wind power, and defense goods, economist Veronika Grimm advocates for a swift, obstacle-free, and geopolitically savvy national strategy that encompasses strategic partnerships, energy trading, and trade relations.
- As negotiations between the USA and China discuss access to rare earths, Grimm urges continental European nations to bolster purchasing cooperations, reserve strategic reserves of critical raw materials, and foster partnerships with resource-rich countries like Canada, Australia, or Chile in order to mitigate supply disruptions and combat dependency on a single source.
