Can Germany Overcome Its Dependence on Chinese Rare Earth Elements?

The German defense industry faces significant challenges due to its heavy reliance on rare earth elements, crucial for advanced weapon systems. Currently, China dominates the supply chain, with recent export restrictions raising concerns about potential bottlenecks.

A temporary suspension of these restrictions, following discussions between US and Chinese leaders, offers some relief. However, experts warn that the underlying dependence on Chinese resources remains problematic.

The German government is advocating for increased European capacity to process these materials, as the EU currently relies on China for nearly all its rare earth needs. This reliance not only jeopardizes Germany's defense plans but also highlights broader vulnerabilities in the face of international trade tensions.