Raw materials are indispensable to Germany’s and Europe’s prosperity, innovative capacity, economic competitiveness and defence capabilities. At the same time, global raw material supply chains are often highly concentrated and vulnerable to geopolitical tensions, trade disputes and other external shocks. Against this backdrop, diversifying sources of supply and establishing new raw material partnerships have become increasingly important strategic priorities. This study examines how Germany can make its raw material partnerships more effective and make greater use of development cooperation to strengthen resilient supply chains.
The analysis shows that Germany and the European Union have established numerous raw material partnerships, funding instruments and initiatives in recent years. Yet their practical impact has often fallen short of expectations. While political dialogues have been established and new forms of cooperation initiated, only a limited number of concrete investments, industrial projects and robust supply chains have materialised to date. The principal challenge therefore lies less in the absence of strategies than in their implementation.
At the heart of the study is the question of how raw materials policy, foreign trade promotion and development policy can be more effectively aligned. Resource-rich partner countries expect cooperation with Germany and the EU not only to provide market opportunities for their resources, but also to support economic development, strengthen infrastructure, facilitate technology transfer and create employment. The study argues that these objectives are not at odds with Germany’s raw materials security. Rather, they form the foundation of sustainable and mutually beneficial long-term partnerships. Development cooperation can play a pivotal role by helping to establish the institutional, infrastructural and societal conditions required for sustainable and investment-ready raw material projects. This includes strengthening natural resource governance; expanding energy, water and transport infrastructure; supporting local supplier networks; developing skilled workforces; promoting environmental, social and governance (ESG) standards; and ensuring the meaningful participation of affected communities.
Building on an analysis of existing raw material partnerships and their implementation to date, the study identifies key areas for reform and puts forward practical recommendations for policymakers and practitioners. These include transforming the Interministerial Committee on Raw Materials into a more cross-government and implementation-oriented coordination mechanism (IMA+), improving the coordination of existing funding and financing instruments, focusing raw material partnerships more strongly on concrete projects and supply chains, and expanding financing options for early-stage projects. The study also advocates linking raw material partnerships more closely to tangible benefits for partner countries and making more consistent use of Germany’s and Europe’s distinctive strengths: the combination of industrial cooperation, development impact and high sustainability standards.
The study concludes that resilient raw material supply chains emerge when both sides benefit from cooperation. Development cooperation is therefore not a peripheral element, but a strategic pillar of a forward-looking German and European raw materials policy.
Read the entire publication: ‘Vom Dialog zur Lieferkette’ here. Please note, to date this paper is only available in German.
