Germany Launches €1 Billion Fund to Strengthen Mining, Processing, and Recycling Supply Chains

Germany has launched a €1 billion ($1.1 billion) fund aimed at enhancing domestic and international projects in mining, processing, and recycling. Managed by the state-owned development bank KfW, this initiative seeks to fortify value chains and reduce dependence on foreign imports.

To qualify for funding, projects must secure a binding offtake agreement and complete a feasibility study, as specified by KfW. A government-led committee will oversee project discussions and approvals, aligning with Europe’s increasing focus on securing essential minerals, in line with the EU’s Critical Raw Materials Act.

This initiative reflects similar actions taken by France and Italy, both of which have also introduced raw materials funds. Italy’s €1 billion fund is anticipated to attract another €1 billion from private investors, while France has allocated €500 million for its own fund. Additionally, the European Bank for Reconstruction and Development and the EU launched a joint initiative in July to provide up to €100 million in equity investments for critical materials projects.

The fund targets key minerals, including lithium, copper, battery metals, and rare earth elements, which are vital for sectors like aerospace and defense.

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