The German economy is more dependent on imported raw materials than ever before, a leading industry association warned on Monday.
The Federation of German Industries (BDI) said Germany is highly dependent on countries including China for crucial resources such as lithium.
A suspension of Chinese lithium exports could cost the German economy around 115 billion euros in revenues, equivalent to around 15% of industrial production, according to the association.
In a study presented in Berlin on Monday, the BDI said the German car industry is particularly affected because lithium is essential for the production of electric vehicles.
“Politicians must do everything they can to prevent a worst-case scenario,” said BDI chairman Siegfried Russwurm.
Germany currently imports half of its lithium products from China, up from 18% in 2014.
“Germany and Europe are in danger of losing global competition for strategically important raw materials,” Russwurm warned.
In addition to lithium, the study found that the German economy is highly dependent on 23 crucial raw materials, including rare earth metals that are largely imported from China.
Dependency should be reduced by sourcing materials from a wider range of countries, the study argued, while strengthening domestic extraction and processing.
Recycling technologies should also be developed to create a circular economy and reduce dependence on imports, the BDI said.
