BDA AGENDA 09/24 | COMMENT OF THE WEEK | May 8, 2024

Terry Reintke, MEP, Leading candidate Bündnis 90/Die Grünen for the 2024 European elections

Today, economic policy is also security policy. This is particularly clear when it comes to raw materials policy. The Russian war of aggression against Ukraine has shown how dangerous one-sided dependencies on autocratic regimes are.

In addition to gas and oil, Europe is also up to 100 percent dependent on imports of many metals and industrial minerals - often from China. An export ban by the Chinese government or an armed conflict in the South China Sea would cause almost incalculable damage to the German economy.

The painful disruptions to supply chains caused by the coronavirus pandemic and the Houthi attacks on shipping in the Red Sea have also shown how important diversification of raw material sources is for Europe's economic independence. A strategic raw materials policy is also essential in order to achieve climate protection targets. According to the International Energy Agency (IEA), the demand for metallic raw materials for green energy technologies such as electric cars and solar modules alone will quadruple by 2040.

With the European Critical Raw Materials Act (CRMA), we have taken a major step towards greater raw materials security. The aim of the CRMA is that no more than 65 percent of imports of critical raw materials may come from a single third country. Now we need to take concrete measures to achieve this goal.

Our approach to this is based on four pillars. Firstly, we need to diversify our imports, for example through new raw material partnerships with resource-rich countries such as Chile. We also support international cooperation formats such as the Minerals Security Partnership (MSP) and increased cooperation between the G7 within the framework of the Critical Raw Materials Club.

Secondly, we want to resolutely expand the circular economy and develop it into a profitable business model. This starts with the design of new products. Thirdly, some scarce resources can be replaced by materials with the same functionality and lower environmental impact. For example, we can reduce the need for lithium by increasing the use of sodium-ion batteries.

Fourthly, in order to increase security of supply in the EU, we also need more domestic mining of critical raw materials and the strengthening of processing capacities in the EU. We will work to ensure that the EU makes ambitious progress in this area in compliance with high sustainability and human rights standards. For example, geothermal power plants can be used to tap into the lithium deposits in the Upper Rhine Graben - and generate sustainable electricity at the same time.

Germany is dependent on a secure supply of raw materials for geopolitical, economic and sustainability reasons. Together with European companies, we want to do more to promote a pan-European approach to sustainable and socially responsible raw materials extraction. This is in Germany's own best interests.