Highlights

• Germany imports 5,200 tons of rare earth metals in 2024.
• 65.5% of these metals are sourced from China, exceeding the EU average dependency.
• Critical metals are essential for high-tech industries such as:
  • Electric vehicles
  • Wind turbines
  • Defense systems
• Germany is investing €1 billion in a raw materials fund to:
  • Support domestic processing
  • Reduce reliance on Chinese imports

Germany's reliance on China for rare earth elements (REEs) has emerged as a significant strategic concern. According to the Federal Statistical Office, in 2024, Germany imported 5,200 tons of rare earth metals, with 65.5% originating from China. This dependency surpasses the European Union average of 46.3%, highlighting Germany's heightened vulnerability in this sector. ​

Rare earth elements, encompassing 17 critical metals like neodymium, dysprosium, and lanthanum, are indispensable for high-tech industries, including electric vehicles, wind turbines, and defense systems. Germany's overreliance on a single supplier, particularly in light of China's recent export restrictions, exposes its economy to potential supply chain disruptions.​

While the article by Werner Pluta in Heise Online (opens in a new tab) provides a comprehensive overview of Germany's import statistics, it underemphasizes the broader geopolitical implications of this dependency. Notably, it overlooks the strategic measures Germany is undertaking to mitigate this risk. In 2024, Germany established a €1 billion raw materials fund aimed at supporting domestic processing and recycling of critical minerals, signaling a proactive approach to reducing reliance on Chinese imports, as reported (opens in a new tab) in Foreign Policy.

Furthermore, the article does not sufficiently address the defense sector's concerns. Hans Christoph Atzpodien (opens in a new tab), head of the German Security and Defense Industry Association, emphasized the necessity for government assistance to diminish dependence on Chinese materials, suggesting the establishment of national reserves and increased public investment in alternative sources. ​

In conclusion, while Germany's current dependency on China's rare earth supply is a pressing issue, ongoing initiatives indicate a strategic shift towards diversification and self-reliance. However, the effectiveness of these measures will depend on sustained political will, investment, and international collaboration.​  Germany has some advantages compared to America, for example, it has a more sophisticated magnet production capability.