Highlights

• German firm TRADIUM stores 300 tonnes of critical rare earths in a fortified WWII bunker near Frankfurt.
• This stockpile represents up to 10% of the annual global output for some heavy rare earths, serving as insurance against China's export controls.
• China controls 60% of rare earth mining and 90% of refining.
• The 2025 export restrictions by China require end-use disclosure, causing prices to explode.
• European manufacturers are being pushed toward potential production halts due to these restrictions.
• Europe's just-in-time supply chains could collapse within weeks if Chinese imports stop.
• The EU's 2030 goals for domestic mining and refining face decade-long delays.
• Private stockpiles are becoming a critical stopgap for Europe's supply chain and production needs.

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Hidden in a former World War II bunker east of Frankfurt lies one of Europe’s most closely guarded treasures—not gold or cash, but barrels of rare earths. Behind a four-tonne steel door, German trading firm TRADIUM is quietly stockpiling the metals that power modern life: neodymium for EV motors, dysprosium for military sensors, terbium for wind turbines.

And nearly all of it comes from China.

As global tensions rise, what once seemed like a prudent hedge now looks like critical infrastructure. The Tradium vault—heavily surveilled and climate-controlled—houses an estimated 300 tonnes of rare earth elements. Some analysts believe it could hold up to 10% of the world’s annual output for select heavy rare earths. One Asian tech giant has stashed $10 million worth of its own supply here. A European manufacturer has locked in two years’ worth of magnet metals. This isn’t just inventory. It’s insurance.

A Strategic Stockpile in Civilian Hands

Founded in 1999 and headquartered in Frankfurt, TRADIUM GmbH (opens in a new tab) is a private metals trading company specializing in high-purity technology metals, rare earth elements, and strategic materials. With fewer than 40 employees, it punches above its weight—serving global clients across defense, automotive, and electronics sectors. In 2025, the firm expects turnover to hit €300 million.

But TRADIUM is not just a reseller. It speculates on metals, buying when prices are low and warehousing them in its fortified facility. Through its affiliated storage arm Metlock, (opens in a new tab) the company offers secure vault space for industrial clients and investors alike. The bunker’s secrecy and surveillance aren’t theatrics—they’re a reflection of how strategically sensitive these materials have become.

“Our modern life entirely depends on these materials,” says founder Matthias Rüth (opens in a new tab). “And finding substitutes is extremely difficult.”

China’s Chokehold Tightens

That’s why the vault exists in the first place. China currently controls roughly 60% of rare earth mining and more than 90% of global refining. For decades, Beijing viewed rare earths as a strategic asset and invested accordingly. The West, meanwhile, looked away. Europe imported cheap. The U.S. shut mines. China surged ahead.

In 2025, China clamped down harder—requiring export licenses for rare earths and demanding end-use disclosure, including proof they won’t be used in defense. It was a bureaucratic chokehold on top of a market monopoly. “Our Chinese suppliers would prefer open trade—but their hands are tied,” says Rüth.

Prices exploded. Manufacturers panicked. “If imports came to a halt,” he warns, “the supply to German companies would collapse in just a few weeks.”

The Just-in-Time Crisis

European industry still relies on just-in-time delivery models. That logic disintegrates in a rare earth shock. One Tradium client warned that even a modest disruption “could go as far as halting production.”

Some firms have begun shifting toward “just-in-case” strategies, warehousing their own critical stocks. But storing high-value metals eats cash. Most companies can’t afford to tie up capital that way. And Europe, collectively, has dangerously thin inventories. Industry sources suggest manufacturers could run dry in just a few months if Chinese exports were halted.

Europe’s Late Awakening

In 2024, the EU passed the Critical Raw Materials Act, setting targets for 2030: 10% of rare earths mined domestically, 40% refined within the bloc, and 25% sourced from recycling. But those goals face long odds. Europe has almost no operational rare earth mines. The few promising deposits—like Sweden’s Kiruna site—won’t produce for another decade.

Germany, for its part, launched a €1 billion Raw Materials Fund to co-finance mining and refining ventures globally. But it's a scramble to make up for decades of neglect. As one analyst put it, Europe is “trying to sprint after decades of jogging.”

Stockpile or Sink

Back in Frankfurt, TRADIUM’s bunker is more than a cache of metals. It’s a symbol of what Europe should have done long ago: plan for scarcity before it arrives. The vault won’t solve the rare earth imbalance, but it might buy time.

Rüth’s verdict is grim: “It’s already too late.”

Maybe. But for now, that cold, dark bunker might be the only thing standing between Europe’s industrial lifeblood—and a grinding halt.

For this article Rare Earth Exchanges reviewed articles from Nikkei Asia (opens in a new tab) and other media plus TRADIUM website.

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