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Germany Sets Raw Materials Fund in Motion With First Lithium and Overseas Investments

Early federal co‑investment aims to cut exposure to Chinese supplies by seeding projects that attract private capital.

Overview

  • Economy Minister Katherina Reiche outlined initial allocations, including €50 million this year for lithium extraction in the Upper Rhine Graben and up to €150 million for a copper‑gold project in Canada and up to €100 million for rare earths in Australia.
  • The Economic Affairs Ministry said the fund is ready to start work, with several candidate projects still under examination.
  • Reiche said private backers will add substantial funding, citing a 1‑to‑9 leverage ratio and €1.9 billion in commitments tied to the Palatinate lithium initiative led by Vulcan Energy Resources.
  • Government plans foresee roughly €1 billion in public financing over the coming years through KfW, according to official statements and media reports.
  • Opposition leader Jens Spahn announced a planned annual China‑Check and a commission to review security‑relevant economic ties, with faction votes expected Tuesday and a Bundestag debate scheduled for Friday.