Security of supply starts with respect – not with lecturing

Germany’s dependence on critical raw materials is a geopolitical vulnerability. Strategic partnerships with the Global South are now needed – to ensure greater resilience and shared value creation, argues Gerd Röders, President of the WirtschaftsVereinigung Metalle (WVMetalle) and managing partner of the G.A. Röders GmbH & Co. KG in Soltau.

Rare earths, as well as raw materials such as magnesium and aluminium, are indispensable for modern industrial societies – and thus for Germany’s economic future. Without them, there would be no smartphones, no cars and no wind turbines. These materials are even essential for our country’s defence capabilities.
Germany still has a considerable number of companies that process such raw materials and feed them into the industrial value chain. However, the raw materials themselves must be imported – and this is precisely where the strategic Achilles’ heel lies.
For years, China has been pursuing a geopolitically motivated raw materials policy. Through long-term economic cooperation, particularly in Africa and parts of Asia, Beijing has secured extensive access rights to rare earths and other critical metals. In some cases, raw materials such as magnesium were dumped on the world market – with the result that many market-based competitors globally were forced out of business. This created strategic dependencies that are now costing us dearly.
The US is taking a much more geopolitical and targeted approach to this issue. Whilst many of the Trump administration’s measures are erratic, they do follow a strategic line: ‘Zero China’ and increased domestic processing of raw materials. Even under President Biden, the Inflation Reduction Act provided a strong impetus in this direction. Europe, by contrast, has for a long time largely stood by and watched, continuing to pursue a purely market-based approach. This attitude is now beginning to change – but the turnaround requires substance and speed.
Our practical experience as an association shows that this is possible. In discussions with partners from African countries and with the Bolivian Embassy, it became clear that the Global South increasingly wants to do more than just supply raw materials. It wants to be involved in value creation – through industrial processing, access to technology and partnerships.
Europe has an advantage here: in many places, it is still regarded as a reliable, neutral partner – less polarising than China or the US. We should capitalise on this credibility. After all, geopolitically neutral spaces are becoming increasingly rare.
What is needed now is strategic coordination between business, foreign policy and development policy. It is not enough simply to seek to purchase raw materials. We must offer partnerships that create opportunities – both in the region and for our industry. After all, there are many industrial processes between the mine and the production line in the car factory.
If we are prepared not only to demand raw materials but also to facilitate joint development, we are not only strengthening our position as an industrial hub. At the same time, we are safeguarding our resilience – both economically and in terms of defence policy.