Germany Raises Raw-Materials Fund by €300 Million to Cut China Reliance
Updated
Updated · Bloomberg · May 22
Germany Raises Raw-Materials Fund by €300 Million to Cut China Reliance
2 articles · Updated · Bloomberg · May 22
Germany agreed to lift the raw-materials fund’s cash resources to €500 million from 2027, adding €300 million after months of coalition wrangling.
The move is aimed at reducing dependence on critical supplies from countries such as China and strengthening vulnerable industrial supply chains.
The vehicle can take stakes in raw-materials projects worldwide and provide state guarantees, giving Berlin more leverage to secure access to key inputs.
Officials are also weighing a much bigger expansion—up to €1.5 billion in firepower—and a possible shift into a sovereign wealth fund from 2028.
Can Germany's new €1.5 billion fund truly break its critical resource dependency on China?
Is Germany embracing state capitalism by turning its resource fund into a sovereign wealth fund?
As Germany funds global mines, what new geopolitical alliances and rivalries will emerge?
Germany’s €1 Billion Raw Materials Fund and the EU’s Critical Raw Materials Act: Building Resilient Supply Chains for the Energy Transition
Overview
Germany is ramping up its efforts to secure vital raw materials by capitalizing the KfW Raw Materials Fund at €1 billion, aiming to reduce supply chain risks for critical minerals essential to electric vehicles and renewable energy. Although the fund has faced delays, its targeted approach focuses on supporting mature projects with established reserves, rather than covering exploration risks. This strategy is designed to provide effective financial backing, strengthen Germany’s industrial base, and support the energy transition, making Germany a key player in critical raw materials project development and financing within the broader European framework.