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Germany Moves to Activate Raw Materials Fund to Curb China Reliance

Berlin signals early execution by committing initial financing to lithium, copper-gold, rare-earth projects to draw in large private capital.

Overview

  • The Economy Ministry said the Rohstofffonds is ready to launch with several candidate projects under final review.
  • Minister Katherina Reiche outlined initial stakes including €50 million this year and up to €150 million in total for Oberrheingraben lithium, alongside €1.9 billion pledged by private investors.
  • Further co-investments are planned at up to €150 million for a copper-gold mine in Canada and up to €100 million for rare-earth projects in Australia, with the Canada venture sized at over €500 million.
  • The program relies on KfW-backed public finance over 2025–2028 of about €1 billion to mobilize private capital at roughly nine euros for each public euro, according to Reiche.
  • Union parliamentary leader Jens Spahn proposed a standing China-Check with a new commission that would report annually on risks and recommend derisking steps, with an initial Bundestag debate slated for Friday.