As the newspaper reports, the project involves, among others, the automotive concern BMW and the arms manufacturer Rheinmetall. Work on the concept is carried out together with organizations representing the automotive industry and the defense sector.
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Financial support from the government in Germany is also being considered, although – as sources cited by the daily emphasize – No specific decisions have been made yet.
The German initiative is supported by industry organizations, including the VDA automotive lobby and the BDSV defense industry association. Organizations representing machine manufacturers and digital technologies, such as VDMA and ZVEI, are also participating in the talks.
One of the options being considered is the creation of a commercial company financed by German companies, in which the federal government could take a minority share. According to Financial Times sources, the cost of creating such an institution could reach several hundred million euros.
The company would deal with, among others, purchasing strategic raw materials for the industry, such as lithium – a key component of batteries used in electric cars.
Germany wants independence from China. Inspired by a Japanese model
The idea refers to system operating in Japan, where the state and private companies cooperate in the purchase of strategic raw materials. The Japan Organization for Metals and Energy Security (JOGMEC) plays a key role there, supporting mining projects and investments in the raw materials sector through loans, guarantees and equity participation.
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Japan expanded this system after 2010, when China imposed an embargo on the export of rare earth metals to that country. This event showed how strong the industry's dependence on the supply of strategic raw materials is.
Trade tensions with Beijing
The concerns of European companies are growing due to trade tensions between the European Union and China. As the Financial Times reminds us, Beijing controls a significant part of the global supply chains of raw materials such as gallium, germanium and antimony, used, among others, in the production of batteries, magnets, electric cars and fighter jet engines.
Last year China has introduced export restrictions on some of these metals, showing its readiness to use its market position in trade disputes.
