Rare earths: China's raw material dominance-with recycling, research and new mines out of raw material dependency?

The strategic importance of rare earth for Germany

The rare earths (lake) are a group of chemical elements that, due to their unique physical and chemical properties, play a key role in numerous modern technologies. Their strategic importance for industrialized nations such as Germany has grown exponentially in recent decades, especially in the context of digitization, the energy transition and safety -relevant applications. However, the increasing concentration of global supply chains, especially China's dominance, has revealed significant economic and geopolitical risks. This article analyzes the complex problem of rare earths from a German perspective, illuminates the dependence on China, evaluates current research and development approaches for new solutions and outlines strategic opportunities for Germany in order to achieve greater independence in the supply of these critical raw materials in the long term.

Definition, properties and classification less frequently (lake)

The rare earths include a total of 17 metals of the period: the 15 Lanthanoids (Lanthan (La), Cer (CE), Praseodym (PR), Neodym (ND), Promethium (PM), Samarium (SM), Europium (EU), Gadolinium (GD), Terbium (TB), Dyprosium (DY), Holmium (HO), inheritance (He), Thulium (TM), YTterbium (YB), Lutium (LU)) as well as Scandium (SC) and Yttrium (y). These are metals that are obtained from ores. Their special physical and chemical properties, such as high reaction (especially with oxygen), easy flammability as well as specific magnetic and spectroscopic characteristics, make them coveted raw materials.

A distinction is usually made between light rare earths (Lsee), which include, for example, Lanthan, Cer, Praseodym and Neodymm, and severe rare earths (Hsee), such as terbium and dyprosium. This distinction is relevant because Lsee occurs much more frequently in most deposits than Hsee.

The term “rare earth” is misleading in that these elements are not necessarily rare. Neodymm, for example, is more common than lead, and Thulium occurs more often than gold or platinum. Rather, the real challenge and thus the “rarity” in the economic sense lies in the low concentration in which they are available in many occurrences, and especially in the extremely complex and costly process of their separation and preparation. Rare earths always occur in nature in nature and with other minerals; Their insulation requires a variety of chemical steps and specific know-how. This technological and economic hurdle, not geological availability per se, is the core of the supply problem.

Below is an overview table of the rare earths:

The 17 rare earths - properties and main applications

The 17 rare earths - properties and main applications - Image: Xpert.digital

The 17 rare earths include both light and severe rare dates with unique properties and diverse applications. Scandium (order number 21) is a light element with high strength in alloys and is used in stadium lighting, fuel cells, X -ray technology and light metal alloys for aviation. YTTRIUM (39) is one of the heavy rare earths and is important for fluorescent materials and superconductive properties, which is why it is used in phosphorus for screens, LEDs, lasers, supral ladders and ceramics.

Lanthan (57) is joyful and forms the basis of the lanthanoids. It is used in catalysts, batteries, special glasses and flints. Cer (58) is the most common rare earth metal and serves as a polishing agent with UV absorption in catalysts, glass polish, UV filters and self-cleaning ovens. Praseodym (59) enables strong magnets and generates yellow -green coloring in glass and ceramics, which means that it is used in permanent magnets, aircraft engines and special glasses.

Neodym (60) is essential for the strongest permanent magnets and is used in NDFEB magnets for electric motors, wind turbines, hard drives and speakers. Promethium (61) is radioactive and the rarest naturally occurring rare earth metal, which is used in fluorescent, atomic batteries and measuring instruments. Samarium (62) is suitable for magnets at high temperatures and neutron absorption in permanent magnets, tax rods of nuclear reactors and catalysts.

Europium (63) is important for red and blue fluorescent in LEDs, energy -saving lamps and screens. Gadolinium (64) shows high neutron absorption and paramagnetic properties, which is why it is used as a contrast medium in the MRI, in tax rods and supercorders. Terbium (65) is important for green fluorescent and magnetostriction in LEDs, permanent magnets and sensors.

Dyprosium (66) increases the coercive field strength of magnets at high temperatures and is used in high-temperature permanent magnets and lasers. Holmium (67) has the strongest known magnetic moments and is used in medical and military lasers. Erbium (68) creates pink coloring and is used in fiber optic cables, medical lasers and for glass coloring.

Thulium (69) is the rarest stable lanthanoid and serves as an X -ray source in portable X -ray devices and lasers. Ytterbium (70) is used for infrared laser and as a reducing agent in stainless steel alloys. Lutium (71) is the most expensive rare earth metal and is used in positron emission tomography, petrochemical catalysts and experimentally in cancer therapy.

Key applications and growing relevance for future technologies

Due to their extraordinary properties, rare earths have become indispensable in a wide range of high technology applications and play a central role in the technological development and competitiveness of modern economies. Their importance increases with the progress of digitization and the global energy transition.

The most important fields of application include:

• Permanent magnets: Neodym-iron-Bor (NDFEB) magnets are the strongest known permanent magnets and essential for powerful and compact electric motors in electric vehicles, hybrid cars, e-bikes, robots and industrial plants. They are also indispensable in generators of wind turbines (especially gearless offshore systems), hard drive drives, speakers and headphones. Dyprosium and terbium are often added to maintain the performance of these magnets at high temperatures.
• Catalysts: CER is used in automotive catalysts to reduce harmful exhaust gas emissions. Lanthan and other lake are used in catalysts for oil refinement (Fluid Catalytic Cracking) and other chemical processes.
• Batteries: Lanthan is an important part of nickel metal hydride (NIMH) batteries that are used in hybrid vehicles and portable electronics.
• Luminous substances: Europium (for red and blue) and terbium (for green) are crucial for the color quality and efficiency of light -emitting diodes (LEDs), energy -saving lamps, flat screens (LCD, OLED) and other display technologies. Yttrium is also used in fluorescent.
• Optics and laser: Lanthan improves the optical properties of special glasses for camera lenses, telescopes and binoculars. The inheritance is used in fiber optic cables for signal reinforcement. Neodym, Ytterbium, Holmium and Erbium are important components in various laser types for medicine, industry and communication.
• Other high-tech applications: This includes polishing agents (ceroxide for precision optics and semiconductors), special ceramics (YTTRIUM for improving high-temperature resistance), medical imaging (gadolinium as a contrast medium in MRTS), sensors, supral ladders, as well as applications in the armor and space industry (precision optics, navigation systems, Drone and rocket control).

For German key industries such as the automotive industry (especially in the transition to electromobility), machine and plant engineering, renewable energies (especially wind power) and the electronics and medical technology industry, rare earth are of existential importance. The progressive digitization and the ambitious goals of the energy transition lead to a forecast significant increase in global needs in lake in the coming years and decades. For example, the demand for lake for permanent magnets could be tenfolds by 2050. The criticism of many rarer earths results not only from potential supply bottlenecks or the geographical concentration of production, but also from the lack of direct and equivalent substitutes for many of their high -performance applications. Although research on replacement materials is carried out intensively, See can be replaced in many areas due to their unique electronic and magnetic properties technologically difficult or only with the acceptance of loss of performance. This technological “lock-in” situation tightens the dependency problem and underlines the urgency to increase both supply security and to develop alternative technological solutions.

Germany's critical dependence on China in rare earths: new strategies for technological sovereignty

In view of the strategic importance of rare earths and the complex challenges in connection with their security of supply, a well -founded analysis of the current situation and future options for Germany is essential. This article pursues the aim of comprehensively examining the problem area of ​​the rare earths, analyzing the specific dependence on China, presenting the state of research with regard to new solutions and based on this based on this to ensure strategic opportunities for Germany in order to ensure long -term and sustainable care with these critical raw materials and to strengthen its own technological sovereignty.

Global supply landscape and Germany's dependency

The global supply of rare earths is characterized by an exceptionally high concentration both in the occurrence and the promotion as well as, and even more pronounced in further processing. This concentration, especially China's dominance, is a significant strategic challenge and a potential risk for industrialized nations like Germany.

Worldwide occurrence, promotion and processing - the dominant role of China

Although rare earths are not extremely rare, as already mentioned, economically degradable concentrations can only be found in relatively few places worldwide. The largest known reserves are located in China, which is estimated to have around 44 million tons of rare earth oxides (SEO). Other important reserves are located in Vietnam (approx. 22 million t), Brazil and Russia (approx. 21 million t), India (approx. 6.9 million t), Australia (approx. 4 million t) and the USA (approx. 1.8 million t). Greenland also has significant occurrences.

China has played a leading role in global mine production for decades. In 2021, China's share of global mining funding was around 61-64%, and for 2023 it was estimated at around 70%. The USA, Myanmar and Australia are other important producers, but with significantly lower market shares. Historically, the United States was the largest sponsor until the late 1980s before China massively expanded its production from the turn of the millennium and began to dominate the market.

China's dominance in the area of ​​refining and further processing of the rare earths is even more pronounced. Here China controls about 90% of global capacities. This means that even rare concentrates that are dismantled in other countries (e.g. in the USA or Australia), often have to be transported to China for separation and finishing. This step - the separation of the chemically very similar lake from each other and of accompanying elements - is technologically demanding and capital -intensive.

China's supremacy is not only due to rich geological occurrence, but is the result of a long -term industrial strategy. In the past, this often included the acceptance of lower environmental standards and the use of state subsidies in order to obtain and maintain a dominant position. As a result, production in western countries often became unprofitable and mines and processing plants were closed. In recent years, China has consolidated its SE -industry, export quotas and tariffs (historically and potentially also in the future) as control instruments and increasingly focused on the production of higher -quality products and added value in their own country. A significant step was the prohibition of exporting technologies to process less frequently for magnets at the end of 2023, which further cemented the technological dependency.

Another important differentiation concerns the light (lsee) and severe (Hsee) rare earths. While Lsee such as Lanthan and Cer are relatively frequently occurred and also broken down outside of China, the supply of certain critical Hseer, which are essential for high -performance applications such as permanent magnets (e.g. dyprosium, terbium), is almost entirely dependent on China and the neighboring Myanmar. This specific dependency on the Hsee, which often occurs in ion radsorption stones, the breakdown of which is particularly environmentally problematic, represents a neuralgic point in the global supply chain.

Global mine production and reserves less frequently earth (based on data for 2021/2022)

Global mine production and reserves less often earth (based on data for 2021/2022) - Image: Xpert.digital

Note: Depending on the source and year of survey, the numbers can vary slightly. SEO = rare earth oxides. The reserve information for China fluctuates strongly in the sources.

Global mining production is less likely to be dominated by China, which in 2021, with 168,000 tons of SEO, issued around 61-64% of global funding. The United States is in second place with 43,000 tons (15.5-16%market share), followed by Myanmar with 26,000 tons (9.4-7.5%) and Australia with 22,000 tons (8.0-5.9%). Thailand produced 8,000 tons (2.9% market share). In 2021, Vietnam had a low production of around 360 tons, according to DERA, with the USGs giving higher values. Other countries such as Brazil, Russia and India currently have little production. The overall global production was around 270,000-280,000 tons.

The reserves show a different picture: China has an estimated 44 million tons of SEO (36.7-63%of the world reserves), Vietnam over 22 million tons (18.3%), Brazil and Russia each over 21 million tons (17.5%each). India has 6.9 million tons (5.8%), Australia 4 million tons (3.3%) and the USA 1.8 million tons (1.5%). Greenland has 1.5 million tons of reserves (1.3%), but currently does not produce. The global total reserves are estimated at 120-166 million tons of SEO.

Analysis of Germany's import dependency and the EU of China

China's dominance in the global sea chain leads to a pronounced import dependence on Germany and the entire European Union. Current data from the Federal Statistical Office show that Germany imported around 3,400 tons of rare earth directly from China in 2024, which corresponded to 65.5% of the entire German sea imports. For the EU as a whole, the proportion of direct imports from China in 2024 was 46.3% (6,000 tons), followed by Russia with 28.4% and Malaysia with 19.9%.

The dependence on specific rare earths that are required for high -performance magnets, such as neodymium, praseodym and samarium, is particularly critical. These were also imported almost completely from China in 2024. The situation is similar with products that have already been processed. For example, 84% of the rare earth metals imported according to Germany and around 85-94% of the NDFEB magnets from China, which are produced worldwide and imported to Germany.

This dependency has significant economic implications. It is estimated that in 2022, around 22% of the gross value added of the processing trade in Germany (corresponding to 161 billion euros) from the availability of rare earth. Especially affected industries are other vehicle construction (67%of the added value on the sea), motor vehicle construction (65%) and the production of electronic and optical products (55%).

It is important to note that the statistical recording of the origin of rare earths can potentially underestimate the actual dependence on China. If only the last shipping country is recorded, further processing locations in third countries can disguise the original Chinese provenance of Lake Roh Lake. For example, Austria and Estonia act as a processor for German imports, and Malaysia is an important supplier for the EU. However, since China dominates global refining, it is very likely that a large part of the raw materials processed in these countries originally comes from China. The official import statistics therefore may not depict the full depth of the interweaving with Chinese sources.

Import dependence on Germany and the EU of China for selected rare earths and processed products (based on data for 2023/2024)

Import dependence on Germany and the EU of China for selected rare earths and processed products (based on data for 2023/2024) - Image: Xpert.digital

Note: The numbers are based on the latest available data, usually for 2023/2024. Exact percentages can vary slightly depending on the data source and survey methodology.

Germany and the European Union have a significant import dependence of China in rare earths and processed products, as current data from 2023 and 2024 illustrate. In rare earths, Germany receives 65.5 percent of its raw materials and oxides from China, while the EU is somewhat less dependent at 46.3 percent. Germany's other important delivery countries are Austria with 23.2 percent and Estonia with 5.6 percent. The EU diversifies more and obtains an additional 28.4 percent from Russia and 19.9 percent from Malaysia.

The dependence on specialized products is particularly critical. Neodymm, praseodym and samarium, which are essential for magnet production, come from China almost completely. In the case of further processed rare earth metals, Germany's import share from China is between 82 and 84 percent. The situation for NDFEB permanent magnets is similarly dramatic, with both Germany and the EU moving into 84 to 94 percent of their imports from China. Japan is the only noteworthy alternative here and covers around ten percent of world production.

The dependency reaches its peak in severe rare earths, since the EU imports hundred percent of its processed severe rare earth elements such as dyprosium and terbium from China. Even with slight rare earths such as CER, neodymium and praseodym, 69 percent of EU imports come from China.

Economic and geopolitical risks of dependency

The high concentration of the sea supply chain on China harbors significant economic and geopolitical risks for Germany and the EU. In the past, China has repeatedly used its dominant position to influence prices and to use deliveries as a political means of pressure.

A well-known example is the throttling of sea exports to Japan in 2010 in the course of a territorial dispute. Recent developments, such as the introduction of export controls for certain lake metals and magnets by China in April 2025, have once again shown the vulnerability of western industries. These measures led to significant price increases on the world market outside of China-dyprosium oxide cost up to $ 300 per kilogram-and threatened to cause production stops in the German automotive industry within four to six weeks, since the inventory was quick.

Such delivery interruptions or drastic price increases endanger the competitiveness of German key industries, especially in the areas of electromobility, renewable energies and high technology, and can massively hinder the achievement of the ambitious goals of the energy and traffic transition as well as digitization. The dependency is multi -dimensional: it not only affects raw material extraction, but also more critically the refining and the production of intermediate products such as permanent magnets. Even if Roh-See from other sources were available, the necessary processing capacities outside China are often missing in order to convert them into the required high-purity metals or alloys. This means that a diversification of mine production alone does not dissolve the core dependency in the middle part of the value chain. The establishment of your own European refinery and processing capacities is therefore an equally critical bottleneck as the raw material acquisition itself.

Ecological and social implications of global sea acquisition and processing

The extraction and processing of rare earths is associated with considerable ecological and social problems, which are often concentrated in the mining and production countries. The breakdown often leads to massive environmental degradation, including soil erosion, contamination of water resources through the use of chemicals (e.g. acids, lye) and heavy metals, air pollution through dust and poisonous gases as well as the destruction of natural life pepper and biodiversity loss. The water and energy consumption is also very high in these processes.

A special problem is the frequent occurrence of radioactive accompanying elements such as thorium and uranium in sea deposits. When preparing, there are considerable amounts of residues-estimates are generated in the production of a ton of lake, around 2,000 tons of overburden and processing residues, including up to 1.4 tons of radio-active waste. The improper storage of these residues, as in the case of the huge Tailings lake at the Bayan-Obo-Mine in China, leads to long-term contamination of floors and groundwater.

The social effects in the mining regions are also serious. This includes significant health risks for workers and the local population, for example through dust exposure (pneumoconiosis in Baotou) or contact with toxic substances. Often there are displacements of communities, country conflicts and the violation of human rights. Corruption and lack of security precautions are particularly common in countries with low environmental and social standards.

In the past, China has accepted lower environmental standards to obtain its market dominance and often tolerated the associated problems. Recently there are signs that China tries to outsource the most environmentally stressful parts of production to neighboring countries such as Myanmar. This relocation of ecological and social costs has reduced the production costs for western industries at short notice, but has led to ethical dilemmata in the long term and an externalization of the true costs of sea production. A sustainable supply strategy for Germany and Europe must take these aspects into account and internalize these aspects instead of only moving the problems geographically. The development and implementation of one's own European extraction and processing capacities must therefore be observed in compliance with the highest environmental and social standards, which in turn influences the profitability of such projects.

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Research and development approaches to reduce dependency

In view of the critical dependence on rare earths and the associated risks, intensive research and development efforts (F&E) are essential to find alternative solutions and to strengthen the security of care in Germany and Europe in the long term. The F&E activities essentially focus on three areas: substitution and increase in efficiency, recycling and circular economy as well as the development and sustainable extraction of new primary and secondary raw material sources.

Substitution and efficiency

The substitution of rare earths by other materials or the use of technologies that do without lake is a central research approach. At the same time, efforts to use more efficient use of the sea to reduce the specific needs per application unit.

Replacement materials for magnets

Permanent magnets, especially NDFEB magnets, are one of the main applications for the lake and a critical bottleneck. Research focuses on several alternative material classes:

• Iron nitrid magnets (fen): These are considered promising sea-free alternative. The US company Niron Magnetics drives the commercialization of fen magnets and is building a production facility in Minnesota, USA, supported by government funding. Arpa-e in the United States also promotes research projects on fen magnets.
• Manganese-based magnets: alloys such as manganese bidding (MNBI) and manganese aluminum (mnal) are examined intensively. The Ames Laboratory in the USA has developed MNBI magnets, which show good properties, especially at high temperatures and are already tested in motors in cooperation with industrial partners. In Europe there are also research activities on MNBI, for example at Austrian and German institutes that focus on optimized synthesis procedures such as high -pressure gate (HPT) and thermomagnetic glow.
• High entertropy alloys (HEA): This class of materials is also examined for its potential for magnetic applications, but is often still in an earlier research stage.
• “GAP-Magnets”: The aim is to develop magnets that close the performance and cost gap between inexpensive ferrite magnets and high-performance lake magnets. Mnbi is seen here as a candidate.

The development of sea-free magnets is a global race. While in the United States, concrete steps towards pilot production and commercialization are already undertaken, especially for fen and MNBI magnets, Europe has to intensify its efforts in order not to get behind technologically here and to avoid new dependency, this time by the USA for sea-free magnetic technologies.

Replacement materials for catalysts

Cer, a light lake, plays an important role in three-way catalysts (TWCs) for automobiles for exhaust gas cleaning. Research in this area focuses less on the complete replacement of CER, since it is one of the more frequent and cheaper lakes, but rather on the reduction of the more expensive and more critical platinum group metals (PGM) such as platinum, palladium and rhodium.

• Approaches include the development of copper-based catalysts, which can significantly reduce the PGM share.
• Research on the optimization of ceroxide nanoparticles aims to increase their efficiency in catalysts and thus potentially reduce the use of materials.
• The TU Darmstadt is researching the oxygen dependency of ceramous fluorescent, which can also be relevant for the understanding of the ceramic chemistry in catalysts.

In the area of ​​automotive catalysts, the primary driver for substitution research is less the ceramic availability than the costs and criticism of the PGM. The substitution of CER itself tends to be less in focus here than, for example, the replacement of heavy lake in magnets.

Replacement materials for fluorescent materials

Europium, Terbium and Yttrium are crucial for the color quality and efficiency of LEDs and displays. Research is looking for sea-free alternatives:

• Quantum dots (QDS): Half-ladder nanocrystals (e.g. on cadmium, indium, perovskit or copper-indium-sulfide basis) can emit lightly in specific colors and are examined as a promising alternative to sea phosphors in displays and lighting. However, challenges are the toxicity of some QD materials (especially cadmium-containing), their long-term stability under operating conditions and the costs of mass production.
• Organic luminosity (OLEDs): These are already an established sea-free technology for displays, but here too continuous material research takes place to improve efficiency, lifespan and costs.
• New phosphorus materials: There is research on new inorganic phosphoruses that either get by without a lake or reduce the proportion of critical seas. Often, however, this is more of an optimization of existing systems (e.g. by endeavoring with less critical elements or improvement in quantum efficiency) than a complete replacement.

Although there are progress in alternative lighting materials such as QDS, the complete elimination of sea-based phosphoruses, especially in applications that require the highest color quality and efficiency, is a major challenge. The trend is often more likely to increase the efficiency and reduction of the lake share than to complete a replacement with completely new materials.

Reduction of the sea requirement through material efficiency and design changes

In addition to substitution, the reduction of the specific sea requirement per application is an important lever.

• Fraunhofer institutes have developed technologies as part of the lead project “Criticism of Rare Earth” in order to significantly lower the need for neodymium and dysprosium in permanent magnets through optimized manufacturing processes (e.g. final contour-close production to avoid material loss), alternative magnetic materials and recycling-friendly design of electric motors-potentially to a fifth of today Value.
• Constructive optimizations of electrical drives, such as improved cooling, can lower the operating temperature and thus reduce the need for high -temperature -stabilizing elements such as dyprosium.
• In general, the development of products that get by with less critical raw materials from the outset is an important aspect of resource efficiency.

Material efficiency and design innovations often represent more pragmatic and economically faster solutions than the complete substitution by completely new materials, the development of which is lengthy, costly and risky. However, these incremental improvements can make a significant contribution to reducing criticism.

Recycling and circular economy

The recycling of rare earths from old products and production waste is another crucial pillar to reduce import dependency and to protect primary resources.

Current recycling technologies and their economy

Various technological approaches exist for recycling from the sea, especially from permanent magnets (e.g. NDFEB) and batteries:

• Hydrometallurgical procedures: The metals are selectively extracted from a solution, often after prior exposure to the materials with acids. This is an established procedure in ore preparation and in principle applicable for many mugnetzus compositions.
• Pyrometallurgical processes: The materials are melted at high temperatures, whereby the lake can be accumulated in the slag. These procedures do not generate wastewater and potentially have fewer process steps than hydrometallurgical routes.
• Gas phase extraction and electrochemical procedures: These are further approaches to separate and recovery from the sea.
• Hydrogen brassening (Hydrogen Processing of Magnet Scrap, HPMS): In this procedure, NDFEB-magnetic hydrogen are exposed, which leads to its brass and disintegration into a powder. This powder can then be used directly for the production of new magnets (material recycling) or for further chemical preparation.

However, the economy of the sea recycling is often still a big hurdle. It depends heavily on the current prices for primary lake, the concentration of the valuable elements (especially heavy lake such as dysprosium) in the waste current and the costs of the collective, disassembly and preparation processes. In many old products, such as smartphones, the built -in quantities of lake are so low that recycling is often not profitable. The recycling rates for sea in Europe are therefore still in the low single -digit percentage range or below.

The main problems are:

• Small and inefficient collection rates: Many sea-containing products do not get into the official recycling streams.
• Complex disassembly: Sea components are often firmly integrated in products and difficult to access. The manual disassembly is time and costly.
• Heterogeneous material flows: The composition of electronic scrap and other waste fractions is very different, which makes it difficult to develop standardized recycling processes.
• High purity requirements: For reuse in high -performance applications, the recycled lake must often have very high levels of purity, which makes preparation more expensive.

The economy of the lake recycling faces a henne-egg problem: low-collected volumes and technologically complex, not yet fully mature processes make recycling expensive, which in turn inhibits investments in larger systems and further research. Without scale effects, technological breakthroughs in the automation of disassembly and separation as well as supportive regulatory framework (e.g. binding recycled rates, requirements for recycling product design-“Design for Recycling”), building a comprehensive and economically sustainable sea recycling industry remains a major challenge.

Progress and challenges in building a European recycling infrastructure

Despite the challenges, there is visible progress in building a European recycling infrastructure for lake. As part of the Critical RAW Materials Act (CRMA), the EU has formulated the ambitious goal of covering at least 25% of the annual need for strategic raw materials by recycling by 2030.

Several pilot plants and the first commercial initiatives have been created in Europe or are being planned:

• Heraeus Remloy (Bitterfeld, Germany): In May 2024, Europe's largest recycling facility for rare domestic magnets. The system has an initial processing capacity of 600 tons of old magnet per year, which can be increased to up to 1,200 tons in the medium term. The technology used is intended to reduce CO2 emissions by 80% compared to primary extraction.
• Carester/Caremag (Lacq, France): Planning the construction of a large -scale system for refining and recycling from See, which is scheduled to go into operation at the end of 2026. The processing of 2,000 tons of old magnets and 5,000 tons of primary sea concentrate per year is planned, with a focus on the extraction of light and heavy lake such as neodymium, praseodym, dyprosium and terbium. The project was classified as a strategic project by the EU Commission.
• Mkango Resources / Hypromag: Developed recycling systems in Great Britain (via Hypromag LTD) and is planning a system in Pulawy, Poland (via Mkango Polska), which was also recognized as a strategic EU project. These projects often use the HPMS process.
• Life Inspiree (Italy): An EU-funded project that aims to regain up to 700 tons of lake (neodymium, palladium, dysprosium) from electronic scrap magnets on an industrial scale. In the long term (until 2040) a capacity of over 20,000 tons per year is sought.

These initiatives show that efforts are made on both research and industrial levels to establish the circular economy for sea in Europe. However, building a comprehensive and economically sustainable European REE recycling infrastructure is a lengthy process. It requires considerable and continuous investments in technology development, collective and logistics systems as well as the overcoming of scaling challenges of pilot plants (often TRL 6-7) to complete industrial applications. Against this background, the recycled rates targeted by the EU are to be rated as very ambitious.

German and European research projects and their results/potential (as of 2024/2025)

The research landscape in Germany and Europe is very active in the area of ​​sea recycling and substitution, supported by research institutions and supported by national and European support programs.

• Fraunhofer-Gesellschaft: Various institutes make important contributions.
  • The Fraunhofer Institute for Property Circuit and Resource Strategy (IWKS) is a leader in the development of recycling technologies for NDFEB magnets. Use projects such as FunMag (recycling of magnets for e-mobility) and recyper (manufacture of defined magnett types from mixed old magnetic flows) and optimize processes such as hydrogen briefing (HPMS). The recycling of magnets from wind turbines is also a focus of research.
  • The Fraunhofer Institute for interface and bio-process technology (IGB) researches biotechnological processes for the recovery of See.
  • The completed Fraunhofer guideline project “Criticism of rare earth” laid an important basis for substitution, increase in efficiency and recycling.
• Helmholtz community:
  • The Helmholtz Institute Freiberg for Resource Technology (HIF) on the HZDR is also very active. The Biokollekt project develops biotechnological methods (e.g. with peptides) for the selective extraction of metals, including lake, from complex fabric flows such as electronic scrap. In the Renare project (part of the H2Giga guidance project), the recycling of critical raw materials, including lake, from electrolysers, is examined using innovative flotation and liquid-liquid-particle extraction methods.
• EU-funded projects:
  • Susmagpro (completed November 2023) was a pioneering project to set up a European recycling supply chain for lake magnets. It successfully demonstrated the production and use of recycled magnets in speakers and electric motors.
  • Reesilience (runtime until 2026) builds on the results of Susmagpro and aims at building up a resistant European supply chain for lake magnets, including by developing software tools to optimize secondary materials and improved alloy manufacturing and powder preparation technologies.
  • Greene and Harmony are newer EU projects that started in 2024. Greene focuses on the reduction of the lake content in magnets through innovative microstructure redesign. Harmony aims to establish a pilot recycling circuit for permanent magnets from various applications (wind turbines, electric motors, electronic scrap).
  • Other relevant projects are remanence (completed, recovery of NDFEB magnets), Secrets (extraction of sea from phosphate rock in fertilizer production) and the completed project Eurar, which laid the foundations for a European lake industry and evaluated European occurrence.
• Other actors: The eco-institute regularly creates studies and develops strategy plans for sustainable resource management from See, with recycling playing a central role.

The research landscape in Germany and Europe is dynamic and addresses the entire value chain from substitution to recycling to alternative extraction methods. A clear development from basic research to application -oriented pilot projects and first commercial approaches is recognizable. The networking of excellent research institutions with industry and the targeted support of national and European programs are decisive drivers. However, the biggest challenge remains the successful transfer of research results into the broad industrial application and the scaling to economically sustainable processes (overcoming the “Valley of Death” for innovations). The demonstration of technical feasibility at a relevant level (High Technology Readiness Levels, TRLS) is just as important as the development of sustainable business models.

Development and sustainable extraction of new sources

In addition to substitution and recycling, the development of new primary and secondary sources of raw materials is an important component for diversifying the sea supply.

Potential of European lake deposits

Europe has geologically significant but so far hardly used sea deposits.

• Sweden: The warehouse via Geijer near Kiruna, which is explored by the state mining company LKAB, is considered the largest known occurrence of over 1 million tons of rare earth oxides. LKAB plans to start dismantling from 2027, whereby the full production capacity should only be reached after 10-15 years of lead time. In addition to iron and phosphate, the ore in Per Geijer contains about 0.2% lake. Another important Swedish occurrence is Norra Kärr, which is particularly rich in the heavy lake.
• Norway: The fen carbonate complex in the south of Norway is traded as the potentially largest lake deposit in Europe. Estimates assume 8.8 million tons overall lake, including around 1.5 million tons of magnetic-relevant lake. The Rare Earths Norway (Ren) company explores the area and considers a breakdown to be realistic from 2030, which could potentially cover 10% of European needs.
• Finland: The phosphate mine Sokli in Lapland also contains potential for the extraction of sea as a steward.
• Greenland: Occurrence such as Kvanefjeld, Kringlerne and Sarfartoq have significant sea resources. However, the development is associated with major challenges, including high infrastructure costs, extreme climatic conditions, shortage of skilled workers and complex approval procedures.
• Other occurrence: There are also smaller or less well -examined occurrences in Germany (e.g. Storkwitz in Saxony, which is considered uneconomical, and Bavarian toner with low concentrations), Greece and Spain.

However, the development of these European occurrences is associated with considerable hurdles. This includes the often high investment and operating costs compared to established producers such as China, lengthy and complex approval processes (often 10-15 years), strict environmental requirements (especially in dealing with radioactive accompanying materials such as thorium and uranium) and the need to gain social acceptance for mining projects. Although these occurrence could contribute to diversification in the long term, they are not a short -term solution to the current dependency. A bridge strategy based on recycling, substitution and diversification of existing import sources is therefore essential.

Evaluation of selected European sea deposits-potential, economy, environmental aspects, schedule

Evaluation of selected European sea deposits-potential, economy, environmental aspects, schedule-Image: Xpert.digital

The evaluation of selected European deposits for rare earths shows different development stands and potential. The Swedish deposit by Geijer/Kiruna is operated by the state LKAB and is in the exploration phase with a requested approval. With estimated resources of over one million tons of SEO and a higher proportion of mild rare earths, dismantling could begin from 2027, whereby the full production would only be achieved after 10-15 years. Economicity is potentially given as a child and phosphate, but requires considerable investments. There are challenges with radioactive companions, space consumption and the acceptance of the Sami population.

The Norwegian fen carbonate complex is developed by Rare Earths Norway and is in advanced exploration. With 8.8 million tons of estimated resources, of which 1.5 million tons of Lake Magnet, could be reduced from 2030, which could cover ten percent of the EU requirements. The profitability assessment is still ongoing, significant investments are required. Environmental aspects concern the radioactivity through thorium and environmental compatibility of dismantling and preparation.

The Swedish project Norra Kärr from Tasman Metals is rich in difficult rare earths and is in the approval process. As a long-term project with an uncertain schedule, the economy of Hsee prices and preparation technology depends. Environmental requirements and land use conflicts represent further challenges.

The Finnish Skli deposit of the Finnish Minerals Group offers sea potential with significant Lsee deposits as a phosphate mine. The economy depends on the phosphate market and sea extraction technology as a long-term option for the products. The integration in existing mining and the management of waste are central aspects.

The Grönland Kvanefjeld deposit, formerly from GGG and now from Energy Transition Minerals, has very large occurrence of both easier and difficult earth. However, the project is politically blocked by a moratorium because uranium topics are problematic. High development costs, lack of infrastructure, radioactivity through uranium as well as environmental, social impact and indigenous legal issues make long-term development uncertain.

Research on alternative extraction methods

In parallel to the exploration of conventional deposits, it is intensively researched on alternatives to obtain the sea from secondary sources and using new methods.

• Industrial waste as a source of raw materials (urban/industrial mining):
  • Coal (flight) ashes: In the USA, significant concentrations of severe lake were identified in coal ash from the Powder River Basin. In Great Britain, a project funded by innovate UK (Mormair and Materials Processing Institute, October 2024-August 2025) runs for recovery of neodymium, praseodym and scandium from carbon flugashing by means of a combination of chemical looping reactors and carbo chlorination on a pilot scale. The extraction from carbon frugashing with ionic liquids is also examined.
  • Red sludge (buildingxitrest): As a by -product of aluminum production, red sludge falls in large quantities and also contains lake (especially CER, Lanthan, Neodym, Scandium). The concluded EU project Redmud focused on the complete recycling of building sex remains, including the lake extraction. However, the concentrations are often low and the extraction is complex.
  • Phosphorgips (fertilizer production): The EU project Secrets has successfully demonstrated procedures for extraction from See (ND, PR, DY) from the process streams of phosphate fertilizer production on a pilot scale. This approach is particularly sustainable because it is based on already broken material and does not generate new mining waste.
• Biotechnological processes:
  • Biolaching and biomineralization: The use of specific microorganisms (bacteria, mushrooms) or their metabolic products (e.g. organic acids, enzymes, peptides) for selective solution (biioleaching) or binding (biosorption, biomineralization) of metals from ores or waste flows is a promising area of ​​research. The Helmholtz Institute Freiberg (HIF) in the HZDR (Biokollekt project), for example, is working on using peptides for the selective binding of the sea. At the LMU Munich, the use of Lanthanid-dependent bacteria for extraction from the sea from the sea from industrial waste and mining water is researched, with the bacterial stem Solv showing promising results. The bioleaching of magnetic waste is also examined.
  • Phytomining: Plants are used that enrich the metals from the ground. The metals can then be obtained by harvesting and rubbing the plant biomass. However, this procedure is still in a very early state of research, and the economy has not yet been proven for sea.
• Technology maturity (TRL): Many of these alternative extraction methods are still in early research or pilot phases (TRL 3-6). The scalability of industrial standards and economic competitiveness are often not yet given and require further intensive research and development work.

The development of alternative sea sources from waste flows and using biotechnological processes is very promising with regard to sustainability and potentially less environmental pollution compared to primary mining. These approaches could make an important contribution to the circular economy and reduce the dependence on newly mined raw materials. However, the path to industrial maturity and economy of these technologies is still wide and requires considerable and long -term investments in research, development and scaling. They therefore represent medium to long-term options.

Development of more environmentally friendly separation and refining processes

The conventional separation of the sea, mostly using solvent extraction, is an energy-intensive process that has large amounts of chemicals (s.ures, organic solvents) and generates environmentallych. Therefore, research on more environmentally friendly and more efficient separation procedures is of great importance, not only for primary raw materials, but also for recycling.

• Ionic liquids (ILS) and Deep Eutic Solvents (DES): These are intensively researched as “green” solvent alternatives. They are characterized by low vapor pressure, non -flammability and often high selectivity for certain metals. Research on this takes place at the University of Rostock. In 2023/2024, a special edition of the Minerals journal was devoted to this topic with strong European participation.
• Challenges and TRL: Despite promising laboratory results, the costs for ILS/DES, their long -term stability under process conditions, the efficient recovery of the solvents themselves and the scalability of the processes are still major challenges. Many of these approaches are still on the laboratory or at best pilot scale (TRL often <6). Although research has been intensively researched for years, there have been no broad commercial breakthroughs in the lake industry so far.

The development of new, more environmentally friendly and cost-efficient separation process is a crucial key to significantly improve the ecological balance of the entire sea value chain (both from primary and secondary sources). This is a core area for technological innovations that would only enable a really sustainable European sea supply. Without progress in separation technology, building an independent European value chain remains difficult, even if primary or secondary raw materials were available.

Progress and TRL status of selected recycling and substitution technologies for lake in Europe/Germany (as of 2024/2025)

Progress and TRL status of selected recycling and substitution technologies for lake in Europe/Germany (as of 2024/2025)- Image: Xpert.digital

TRL (Technology Readiness Level): 1-3 basic research, 4-6 validation/demonstration in the laboratory/relevant environment, 7-9 prototype/system demonstration in operational environment, commercial application.

The European and German research landscape shows significant progress in recycling and substitution technologies for rare earths, with different approaches to have different degrees of ripeness. In the area of ​​magnet substitution, iron-nitrid magnets with a technology ready of technology develop from 6-8, especially in the USA by Niron Magnetics, while EU research is less prominently represented. This technology aims at applications in electric motors and generators, but faces challenges in scaling, costs and performance comparison with conventional NDFEB magnets.

Mangani-bismuth magnets are located with a TRL of 4-7 in an earlier development phase, with German and Austrian institutions such as the TU Bergakademie Freiberg and the Montan University in Leoben. The main areas of application are industrial motors and so-called “gap magnets”, while the synthesis of pure phases, thermal stability and scaling represent the central challenges.

In the case of fluorescent substances, quantum points have already reached a high level of maturity of 7-9 in display applications, with the participation of various companies and research institutes such as Fraunhofer. Despite promising applications in displays, LEDs and solar cells, there are challenges regarding toxicity, stability and efficiency compared to sea phosphors. Organic LEDs have already reached market maturity with a TRL and are present as established industry in displays and lighting, but continue to fight with life problems with blue LEDs as well as cost and efficiency issues.

The recycling of NDFEB magnets shows various promising approaches. The hydrogen brassening combined with material recycling has reached a TRL of 7-8, with German institutions such as the Fraunhofer IWKs together with international partners and EU projects such as Hypromag and Susmagpro/Reesilience. This technology enables direct reuse for new magnets, but faces challenges in the quality of recycled magnets, the collection, disassembly and economy.

Hydrometallurgical procedures with a TRL from 4-7 are developed by Fraunhofer, the TU Bergakademie Freiberg and companies such as Carester and aim at recovery of pure See-Oxide and metals. The complexity of the processes, the use of chemicals, costs and selectivity issues remain central challenges. Pyrometallurgical approaches are still in the research phase with a TRL of 4-6 and fight with energy intensity, possible sea loss and purity problems.

Innovative biological processes such as biioleaching and biosorption are researched with a TRL of 3-5 by institutions such as HZDR, the LMU Munich and the Fraunhofer IGB for electric scrap and industrial waste. The challenges lie in the selectivity, kinetics, robustness of the microorganisms and economic scaling.

Alternative extraction methods also show potential. The extraction from carbon flugashing with a 4-6 TRL is mainly pursued in US and British projects, while the extraction of phosphate remains of fertilizer production in the Secrets project with partners such as Yara and REETEC has achieved a TRL of 6-7. Both approaches fight with low concentrations and economic issues.

Environmentally friendly separation technologies using ionic liquids and deep eutectic solvents are still in the early research phase with a TRL of 3-5, with the University of Rostock and various EU projects being involved. The challenges lie in the costs of the solvents, their stability, recovery and scalability for industrial application.

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Strategic options for Germany for long -term independence

In order to reduce the significant dependence on rare earths, especially China and to ensure long -term security of supply, Germany is available to a number of strategic options at national and European level. These include political course, the structure of resilient value chains, the intensification of international cooperation and the targeted strengthening of your own technological leadership.

National and European political design

The political framework is crucial to initiate and support the necessary transformations in raw material supply.

German raw material strategy and national circulatory management strategy (NKWS)

The German raw material strategy, most recently updated in 2020, aims to support companies in a safe and sustainable raw material supply. The core pillars are the diversification of the sources of supply, the promotion of recycling and material efficiency, the strengthening of domestic raw material acquisition (where possible and sensible) as well as the support of German companies in international competition. The importance of research and development as substitution and more efficient recycling processes is particularly emphasized for critical raw materials such as sea.

The national circulatory business strategy (NKWS) adopted by the federal government in December 2024 sets important complementary accents here. Include their central goals with relevance for the lake:

• Reduction of primary raw material consumption: In the long term, the per capita consumption of primary raw materials in Germany should be significantly reduced.
• Closing of fabric circuits: The proportion of secondary raw materials in the use of material should be increased significantly; The EU is aiming for a doubling by 2030, a goal that the NKWs picks up.
• Strengthening the independence of raw materials: The goal is explicitly pursued 25% of the need for strategic raw materials such as rare earths or lithium by 2030 by recycling, which is in harmony with the EU Critical RAW Materials Act.

However, the previous implementation of these strategies has been viewed critically. Experts criticize a gap between the formulated goals and the actual implementation, in particular with regard to the provision of sufficient funds, the acceleration of approval procedures for domestic projects and the lack of willingness to invest in the investment of industry as long as the world market prices for lake are comparatively low. A lack of strategic thinking and concrete, binding measures are criticized. The NKWs is a newer approach here, the effectiveness of which still has to prove. There is an obvious conflict of goals between the long -term strategic provision and short -term economic considerations, which must be overcome by political control.

EU Critical Raw Materials Act (CRMA)

The EU Critical Raw Materials Act (CRMA), which came into force in May 2024, forms the central European legal framework to strengthen supply security with critical and strategic raw materials. Its core destinations for 2030 are ambitious:

• At least 10% of the annual EU requirement of strategic raw materials should come from domestic funding.
• At least 40% are to be processed in the EU.
• At least 25% should be covered from recycling within the EU.
• The dependence on a single third country for a strategic raw material is to be limited to a maximum of 65%.

A heart of the CRMA is the designation and promotion of so -called strategic projects. These can benefit from accelerated approval procedures (a maximum of 27 months for mining projects, 15 months for processing and recycling projects) and financial support. In March 2025, a first list of 47 such projects were published that affect battery resources, but also include projects in the area of ​​less frequent earth (e.g. the Kiruna mines project in Sweden and recycling initiatives such as the Pulawy project in Poland). National contact points for these projects must be named for implementation in Germany (deadline until February 2025), whereby the Federal Ministry of Economics and Climate Protection (BMWK) and the German Raw Material Agency (Dera) play a coordinating role.

The assessment of the CRMA is mixed. On the one hand, the act is seen as an important and necessary step towards addressing raw material addiction. On the other hand, there are doubts about the technical and ecological realizability of the ambitious goals, especially for rare earths, within the time frame set. The often very long approval times for mining projects (10-15 years) are in contrast to the deadlines targeted in the CRMA. In addition, resistance from the civilian population could slow down the implementation against new mining or processing projects in Europe. The success of the CRMA will decisively depend on the consistent implementation by the Member States, the mobilization of considerable private investments and the dissolution of conflicts of goal, for example between fast permits and high environmental standards.

Funding programs and initiatives

To support the strategic goals, there is a wide range of funding programs at the German and European level:

• Germany: The BMWK and the Federal Ministry of Education and Research (BMBF) offer various programs that address research, development and innovation in the field of critical raw materials, resource efficiency and circular economy. This includes the newly laid out raw material fund, the program (strengthening the transformation dynamics and departure in the areas and at the coal-fired power plant locations) and unbound financial loans (UFK guarantees) to secure foreign projects.
• EU: Programs such as HORIZONT Europe, Inveu and Life offer financing options for research, innovation and implementing technologies in the area of ​​see -substitution, recycling and sustainable extraction. The innovation fund can provide funds for recycling capacities.
• Initiatives: The European Raw Materials Alliance (ERMA) plays an important role in the identification and promotion of investment projects along the entire sea value chain in Europe. ERMA has formulated the goal that 20% of the European need for sea magnets from EU-owned production could be covered by 2030, for which investments of around 1.7 billion euros were identified. Resource efficiency programs such as progress in Germany also contribute to the awareness and initiation of measures.

Although there is a large number of funding instruments, their effective coordination, accessibility, especially for small and medium -sized companies (SMEs) and sufficient financial resources in relation to the size of the challenge, are decisive for their effectiveness. A fragmentation of the funding landscape and bureaucratic hurdles could reduce the intended effect and delay the urgently needed fast structure of capacities.

Overview of EU and German political strategies and funding programs relevant for rare earths (selection)

Overview of EU and German political strategies and funding programs relevant for rare earths (selection)- Image: Xpert.digital

The European Union and Germany have developed various political strategies and support programs that are of particular relevance for rare earths. The EU Critical Raw Materials Act (CRMA) of the European Union aims to win ten percent of the required raw materials through self -funding by 2030, to process 40 percent and to cover 25 percent by recycling, whereby the dependency on a single third country is to be limited to a maximum of 65 percent. Strategic projects are funded in the areas of dismantling, processing and recycling as well as research and innovation.

The German raw material strategy of the Federal Government, under the leadership of the BMWK, focuses on diversification, recycling and domestic extraction where sensible as well as research and development for substitution. Measures for diversification, research and development for recycling and substitution as well as the examination of domestic potential are supported. The National Circuit Business Strategy of BMUV and BMWK is aiming to cover 25 percent of the need for strategic raw materials by recycling and reducing primary raw material consumption. The development of recycling capacities, design for recycling and research and development of recycling technologies are funded.

The German raw material fund of BMWK and KfW should contribute to the security of raw materials and reduce dependencies by promoting projects for extraction, processing and recycling critical and strategic raw materials at home and abroad. The BMWK funding program supports the transformation of coal regions and promotes the production and recovery of critical raw materials for key components.

At European level, Horizont Europe strengthens the scientific and technological foundations and promotes innovation, in particular research and innovation for substitution, recycling, sustainable extraction and new materials. The European Raw Materials Alliance (ERMA) of EIT Raw Materials and the EU is working on the establishment of resilient EU value chains for raw materials and identifies and supports investment projects in breakdown, processing and recycling of rare earths. The German program SME innovative: Resource efficiency and circular economy of the BMBF strengthens research and development in small and medium-sized companies and promotes the efficient provision and use of critical raw materials, innovative recycling processes and circular products.

Construction of resilient value chains in Germany and Europe

The structure of your own, resistant value chains for rare earths in Europe is a central element to reduce the dependency on China. This requires efforts across all levels, from raw material extraction to processing to the production of end products and recycling.

Opportunities and challenges in building domestic processing and refinery capacities

A critical bottleneck in the current European sea landscape is the lack of significant capacity for separation of the raw lake in high-purity individual oxides and for subsequent metal production. Even if Europe was increasingly gaining primary or secondary raw materials, they would often have to be exported to China for further processing, which would only shift dependence.

• Necessity: The establishment of European separation systems and metal huts is essential to achieve a real depth of value and strategic autonomy.
• Examples of approaches: In Estonia, Neo Performance already operates materials (silket) a separation system, which, however, rely on imported concentrations. In France there are plans for a facility in La Rochelle and the Caremag project in Lacq aims at integrated processing and recycling. There are also initiatives in Poland (Pulawy project).
• Economicity: The structure of such systems is extremely capital -intensive. The investment costs are high and European producers would have to compete with the established and often state -subsidized Chinese companies. Long -term acceptance contracts and a stable pricing would be necessary to encourage investments.
• Technological hurdles: Specific know-how is required for the complex separation processes. In addition, environmentally friendly and energy -efficient procedures must be developed and scaled in order to meet the high European environmental standards.
• Lsee vs. Hsee: Special attention requires the development of processing capacities for heavy lake (Hseer), since the dependence on China (including the processing of raw materials from Myanmar) is almost 100% and these elements for high -performance magnets are critical.

The establishment of a complete European sea value creation chain is a generational project that can hardly be realized without massive state funding, long-term political obligations and close cooperation between public and private actors. A sole focus on domestic dismantling, without the parallel development of processing, metal manufacturing and magnetic production capacities, would not fundamentally solve the strategic dependency.

“Design for Recycling” as a long -term strategy

Another important long -term strategy is the design of products that contain rare earths in the sense of the circular economy (“Design for Recycling”, DFR).

• Goals: Products should be constructed in such a way that sea-containing components (e.g. magnets in electric motors) can easily be identified, disassembled and used for a variety of recycling at the end of the product life. This would significantly increase the efficiency and economy of the recycling.
• Instruments: The introduction of digital product passes that contain detailed information about the material composition and disassembly instructions is seen as an important instrument to create the necessary transparency for effective recycling. Standard efforts are also relevant here.
• Challenges: The implementation of DFR principles is complex, especially in globalized supply chains with a wide range of manufacturers and product designs. The development and enforcement of binding standards is a major challenge.

“Design for Recycling” is an essential but naturally very long -term strategy. Their full effect on the availability of secondary raw materials will only develop when products that are designed according to the DFR principles today reach the end of their life cycle in 10, 15 or more years. In the short term, DFR cannot solve the current supply problems, but is essential for the development of a sustainable and resilient circular economy for sea in the future.

International collaborations and diversification

Since a complete self-sufficiency in rare earths for Germany and Europe is unrealistic in the short to medium term, international cooperation and the diversification of the sources of supply play a central role in every resilience strategy.

Potential and sustainability assessment of raw material partnerships

Germany and the EU intensify their efforts to expand and expand raw material partnerships with different countries worldwide.

• Graduated countries and focus raw materials:
  • Chile: Focus on lithium and copper, but also potential for other minerals. In January 2023 and June 2024, the cooperation was confirmed, with a focus on sustainable dismantling and scientific exchange.
  • Mongolia: Partnership since 2011, strategic partnership since February 2024. Support from the German Mongolian University of Raw materials and technology.
  • Australia: Energy and raw material cooperation since 2017, increasing focus on climate protection and critical minerals. Study “Australia-Germany Critical Minerals Supply Chains Study” for the identification of value creation potential.
  • Canada: Strategic partnership in the field of critical raw materials.
  • Other partners: Kazakhstan, Ukraine, Greenland, as well as various African (e.g. Namibia, Sambia, DR Congo) and South American countries (e.g. Argentina) are the focus of the EU for raw material partnerships.
• Goals of the partnerships: In addition to the diversification of the sources of delivery, it is also about supporting the partner countries in sustainable raw material extraction, promoting value creation on site (e.g. by building further processing capacities) and establishing high environmental, social and governance standards (ESG).
• Challenges and risks: The implementation of such partnerships is complex. It is important to ensure compliance with ESG standards and avoid greenwashing. Many potential partner countries are politically unstable or have deficits in the government. There is also a strong competition, especially with China, to access raw materials and influence in these countries. The basic problem of resilience does not completely solve a pure relocation of a dominant actor (China) to several actors, which is also potentially unstable or influenced by China. A very careful selection of the partners and an intelligent design of the agreements that create actual advantages for both sides (“Win-Win”) and not just pursue one-sided interests.

Geopolitical implications and long -term stability

The supply of critical raw materials such as rare earths has long since become a central field of geopolitical clashes.

• Instrumentalization of deliveries of raw materials: The risk that raw material deliveries are used as a political means of pressure in international conflicts is real and has already led to considerable market faults in the past.
• Necessity of a coherent European strategy: In view of this geopolitical dimension, a purely economically or technologically driven raw material policy is not sufficient. A coherent of European foreign trade, security and development policy is required that integrated raw material aspects. The securing of the sea supply is therefore inextricably linked to the strengthening of European sovereignty and the design of resilient international relationships. This requires close coordination within the EU and with like -minded international partners.

Strengthening technological leadership

The development and application of one's own advanced technologies in the field of substitution, recycling and sustainable extraction of rare earth offers Germany the opportunity to reduce its dependency and at the same time open up new economic potential.

Germany's innovation potential in substitution, recycling and sustainable extraction

Germany has a strong and broad research landscape in the field of materials science, chemistry and process technology, both at universities and non-university research institutions (e.g. Fraunhofer-Gesellschaft, Helmholtz community, Leibniz community) and in industry.

• Starch fields: As detailed in Section III, there are promising research approaches in Germany and Europe for the development of sea-free magnets, more efficient catalysts and fluorescent, innovative recycling processes (e.g. HPMS, hydrometallurgical and biotechnological approaches) and for the extraction of sea from alternative sources.
• Challenge Technology Transfer: A central challenge is to convert the excellent research results faster and more effectively into industrial applications and marketable products (transfer research). There is often a gap between basic research/pilot projects and commercial scaling.
• Global competition: Germany and Europe are in intensive global competition for technology leadership, especially with the USA and China, which also invest massively in these areas. In order to be able to exist here, targeted and substantial promotion of key technologies, the development of pilot plants and the creation of key markets for sustainable and innovative products.

Economic effects of switching to REE-free technologies for key industries

The switch to technologies that need less or no rare earth has complex economic effects:

• Cost-benefit assessment: In the short term, the substitution from the sea can be associated with higher costs or potential performance losses for certain applications. In the long term, however, by avoiding expensive and price -volatile lake, reducing supply chain risks and the development of new markets for innovative products can result in significant economic advantages.
• Investment and adaptation requirement: German industry, especially in the key sectors automotive construction, renewable energies and electronics, is faced with considerable investment and adaptation to switch their production processes and products to sea-arms or-free alternatives. This affects not only the end products, but the entire supply chains.
• Opportunities for “First Mover”: German companies that rely early on innovative, sustainable and critical raw materials independent technologies can secure competitive advantages as “first mover” and open up new, promising markets. However, this requires risk to risk and a long -term strategic orientation.

The switch to REE-free or efficient technologies is therefore not only a question of security of supply, but also a strategic course for the future competitiveness of German industry in global future markets.

Synthesis and recommendations for action for Germany

The analysis of the rare-earth problem has illustrated the profound dependency of Germany and Europe on global, especially Chinese, supply chains and the associated economic and geopolitical risks. At the same time, promising research approaches and strategic options are shown in order to reduce this dependency and increase the security of supply in the long term. However, achieving greater independence is a complex undertaking that requires a coherent strategy and consistent action of politics and industry.

Evaluation of the risks, opportunities and conflicts of goals

The supply of rare earths is of outstanding strategic importance for Germany, since these raw materials are indispensable for key technologies of the energy transition, digitization and for important branches of industry such as automotive construction. The current global supply structure, dominated by China in promoting and in particular, carries considerable risks due to price volatility, delivery bottlenecks and the potential instrumentalization of raw material supply for geopolitical purposes. These risks are further exacerbated by the increasing global demand.

The chances of reducing this dependency are a multi -track approach:

• Substitution and efficiency: Research on replacement materials and sea-free technologies, in particular for magnets, as well as the increase in material efficiency offer potential to reduce the specific sea requirement in the medium to long term.
• Recycling and circular economy: The establishment of a European recycling infrastructure can make a significant contribution to secondary raw material supply, but is faced with technological and economic challenges.
• Diversification and domestic sources: The development of new international sources of supply via raw material partnerships and the potential use of European occurrences can widen the delivery base, but are associated with your own risks and long lead times.

When pursuing these opportunities, conflicting goals inevitably occur:

• Economicity vs. Pension security: Investments in domestic extraction, processing or advanced recycling technologies are often more cost -intensive than importing from established, inexpensive sources, especially as long as world market prices are low. Short -term cost optimization is in conflict with long -term strategic resilience.
• Environmental protection from local dismantling/processing: The extraction and processing of See is environmentally intensive. Compliance with high environmental standards in Europe increases projects and can lead to acceptance problems among the population, while relocating to countries with lower standards is ethically questionable.
• Speed ​​vs. thoroughness: The urgent need for security of supply requires quick solutions, while building sustainable and environmentally friendly value chains as well as the development of new technologies.

The achievement of independence in rare earths is not a singular goal, but must be considered in the broader context of other strategic imperative such as climate neutrality, maintaining economic competitiveness and maintaining global responsibility for sustainability. This requires careful consideration of priorities and the willingness to accept short -term costs for long -term strategic advantages.

Concrete, prioritized recommendations for action for politics and industry

In order to sustainably improve Germany's security of supply with rare earths and reduce the dependence on individual suppliers, a coordinated procedure for politics and industry is required. The following recommendations for action are prioritized according to time categories:

Short -term measures (up to 2 years)

Intensification of raw material monitoring and risk detection:

• Strengthening the capacities of the German raw material agency (DERA) and the BMWK for continuous analysis of global sea markets, supply chain risks (including reference and intermediate products) and geopolitical developments.
• Building an early warning system for potential pension disorders.

Acceleration of approval procedures for strategic projects:

• Consistent use of the accelerated approval procedures provided for in the EU CRMA for strategically important recycling, processing and potentially extraction projects in Germany and Europe.
• Establishment and effective equipment of the national contact points (“one-stop shops”) according to CRMA.

Building strategic alliances and diversification of imports:

• Active promotion of corporate cooperations for the joint purchase of already sophisticated lake or critical preliminary products (e.g. magnets) from diversified sources that are as value -based.
• Examination and possibly building a strategic, application -related stock for particularly critical lake or components made from it.

Targeted promotion of pilot and demonstration projects:

• Provision of risk capital and funding for scaling promising German and European research approaches in the field of see-recycling (e.g. automated disassembly, efficient separation technologies) and substitution (e.g. sea-free magnets) on an industrial standard (TRL 6-8).

Medium-term measures (2-7 years)

Construction of commercial recycling and processing systems:

• Creation of incentives and reduction of investment scabies for the development of first commercial systems for recycling sea-containing products (especially magnets, batteries, electronics scrap) and for processing lake concentrates in Germany/Europe.
• This includes the separation of Lsee and Hsee as well as metal production.

Implementation of “Design for Recycling” and digital product passes:

• Development and gradual introduction of binding standards for a recycling product design for relevant product groups (e.g. electric motors, electronic devices) at EU level.
• Establishment of digital product passes that provide information on the material composition (including sea content) and dismantability.

Systematic expansion and deepening of raw material partnerships:

• The conclusion and implementation of raw material partnerships with selected countries that have sea deposits. Focus on compliance with high ESG standards, promoting local added value and creation of reliable delivery relationships.
• Support German companies in participating in sustainable international mining and processing projects through instruments of foreign trade funding (e.g. UFK guarantees).

Exam and possibly promotion of local/European primary acquisition:

• Implementation of detailed feasibility and environmental impact study for the most promising European sea deposits (e.g. Kiruna, fen).
• With a positive result and under the strictest environmental and social requirements as well as ensuring social acceptance: targeted promotion of pilot projects for the development and preparation.

Investments in training and further education:

• Construction and promotion of courses and training programs that qualify specialists for the entire sea value chain-from geosciences to process technology and material sciences to recycl experts.

Long -term measures (7+ years):

Establishment of a robust European circular economy for lake:

• Creation of a functioning market for a secondary lake through optimized collecting, sorting and preparation infrastructures, binding recyclery use rates (where useful) and the promotion of demand for recycled materials.

Continuous F & e-funding for disruptive innovations:

• Long-term support for the basic and application-oriented research on the development of the next generation of replacement materials and completely sea-free technologies for key applications.

Creation of key markets for sustainable products:

• Use of public procurement and other instruments for the promotion of products that either contain sustainable/recycled lake or are based on sea-free alternatives and have a high resource efficiency.

A successful strategy for reducing sea addiction requires an intelligent “Policy Mix”. This must be of market economy incentives (e.g. for investments in recycling and substitution, CO2 pricing, which indirectly promotes material efficiency), clear and reliable regulatory requirements (e.g. recycled quotas, ecodesign requirements, transparency obligations) and direct state support (especially for F&A, pilot plants and strategic projects with high risk or long Combine amortization time). Leaving the sole responsibility to the company, as is often practiced in the past, in view of the specific market structure (oligopolis, state actors), the high investment risks and the geopolitical dimension of the lake problem are not sufficient to cause the necessary transformation.

Long -term vision for sustainable and resilient care in Germany with critical raw materials

The long -term vision for Germany should aim not only to significantly reduce the dependence on individual delivery countries for rare earths, but also to take a pioneering role in the development and application of sustainable raw materials and circular economic models. This means:

Diversified and resilient supply chains

Germany draws critical raw materials from a variety of sources, with raw material partnerships playing a central role at eye level and in compliance with the highest sustainability standards.

Strong European added value

A significant proportion of the needs of the lake and the products made from it (in particular magnets) are obtained, processed and recycled within Europe, based on competitive and environmentally friendly technologies.

Innovation leadership

German companies and research institutions are leaders in the development and commercialization of substitution technologies, highly efficient recycling processes and resource -saving product designs.

Established circular economy

Rare earths and other critical raw materials are systematically managed in closed circuits, which minimizes the need for primary raw materials and the environmental pollution is reduced.

Strategic foresight

Germany has mechanisms for early detection changing raw material needs and potential supply risks and can flexibly adapt its strategies.

Independence in rare earths is not a static final state, but a continuous process of risk minimization, technological adaptation and strategic positioning in a dynamically changing global environment. Long -term resilience therefore not only requires one -off efforts, but also a permanent political priority, sustainable investments and the ability to react to new challenges and opportunities as a learning system. The way there is demanding, but for the future viability of Germany's industrial location and the achievement of its ecological and social goals of crucial importance.

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Konrad Wolfenstein

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