Germany to dedicate $2.2 billion to secure supply of critical commodities - report
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(Kitco News) German officials are looking to set aside up to €2 billion (USD $2.2 billion) in a state fund to secure the mining of critical materials needed for the transition to green technology, Bloomberg reported. The goal is to expand access and rely less on China.
The raw materials Germany would be interested in securing include copper, cobalt, lithium, silicon, and rare earths.
Germany is developing “a raw materials fund to support raw materials projects at home and abroad,” Bloomberg cited a spokesperson for the Economy Ministry as saying.
Germany is still highly dependent on other countries, especially China, on these critical commodities, importing over 90%, reported DIW Berlin.
The ruling coalition would still have to approve the plan and funding.
Germany is looking to invest the money into developing a secure supply of commodities after its reliance on Russia for natural gas revealed a major weakness after Russia invaded Ukraine.
On the economic side, Germany has raised its 2023 outlook, estimating a 0.4% increase in GDP, an upward revision from a contraction of 0.4% projected last year.
Economy Minister Robert Habeck described Germany as “adaptable and resilient” in light of the COVID-19 pandemic and the energy crisis faced by the country.
“We helped companies and private households in a difficult period and curbed high energy prices,” Habeck said Wednesday. “We now see that a gradual recovery is underway, despite a persistently difficult environment.”
For 2024, Germany forecasts growth to be at 1.6%, and inflation to slow to 5.9% this year and 2.7% next year.