Raw material security requires partnerships between equals

Germany's industry is dependent on imports of critical raw materials – a geopolitical vulnerability that requires targeted countermeasures in light of growing dependencies and international competition. In an opinion piece, Gerd Röders, President of the German Metal Industry Association (WVMetalle) and Managing Director of Gießerei G.A. Röders GmbH & Co. KG, emphasizes the need for strategic cooperation with the Global South in order to strengthen supply security, value creation, and resilience.

Gerd Röders, President of the German Metal Industry Association (WVMetalle) and managing partner of the foundry G.A. Röders GmbH & Co. KG. Image rights: WVMetalle

Critical raw materials as a strategic Achilles heel

Rare earths, magnesium, and aluminum are essential for key technologies such as electromobility, wind power, and modern communications technology—and thus also for economic and military performance. Although German companies have the capacity to refine and process these materials, the raw materials themselves must be imported.

For years, China has been pursuing a targeted raw materials policy, securing long-term access rights in Africa and Asia and driving out competitors with dumping prices, for example in the case of magnesium. The result is strategic dependencies that are clearly noticeable today.

Geopolitical differences – and Europe's need to catch up

The US is pursuing a strictly geopolitical raw materials strategy with the aim of minimizing its dependence on China and expanding its own processing capacity. The Inflation Reduction Act reinforces this course. Europe, on the other hand, has long adhered to a market-based approach and has only recently begun to respond with its own initiatives – but still too hesitantly.

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Value creation instead of pure raw material exports

Discussions between WVMetalle and African countries and the Bolivian embassy show that many countries in the Global South do not want to simply supply raw materials, but also participate in industrial processing, technology exchange, and partnerships. Here, Europe can leverage its remaining reputation as a reliable, neutral partner—an advantage over China or the US.

Strategic integration of politics and economics necessary

For Röders, one thing is clear: raw material security requires coordinated action between economics, foreign policy, and development policy. The way forward is through fair partnerships that not only secure access to raw materials but also create opportunities locally. There are numerous industrial process steps between the mine and the end product – those who develop these together create lasting bonds and strengthen both the industrial location and geopolitical resilience.