The automotive industry, which needs lithium, for example, for electronic cars, is particularly vulnerable.
Germany’s dependence on foreign raw materials is greater than ever, as a result of which the economy could face billions in damage, the Federal Confederation of German Industry (BDI) said on Monday. TASR informs about it based on the report of the DPA agency.
If, for example, China were to stop lithium exports, the German economy would face a loss of added value of up to 115 billion euros, which is 15% of the total added value created in German industry, according to a study carried out by BDI in cooperation with the consulting company Roland Berger. According to the study, the automotive industry, which needs lithium for e.g. electronic cars, is particularly vulnerable.
Large import from China
“Politicians must do everything to prevent such a worst-case scenario,” BDI President Siegfried Russwurm told a congress in Berlin. About half of Germany’s lithium products are now imported from China, compared to just 18% in 2014. People’s Republic dominates the production of batteries for electric vehicles. “Germany and Europe are in danger of losing the global competition for strategically important raw materials,” Russwurm warned.
According to the study, in addition to lithium, Germany is also significantly dependent on the import of other important raw materials. In 2023, this dependence was high to very high for 23 critical raw materials and increased for ten of them. Among them are, for example, rare earths, which are also largely imported from China. In the study, the authors call for dependence to be reduced by sourcing raw materials from more supplier countries. It is also necessary to strengthen domestic extraction and processing of raw materials and also to develop recycling technologies.
