KfW Establishes Raw Materials Fund to Support German Economy
KfW is launching a raw materials fund on behalf of the German Federal Government to improve the German economy's access to strategic raw materials and reduce dependencies.
Berlin – KfW, the German state-owned development bank, has established a new raw materials fund under the mandate of the German Federal Government. The fund aims to support the German economy in securing access to strategic raw materials and reducing supply chain dependencies.
The fund will focus on the 34 natural resources designated as critical by the European Union, including materials such as copper and lithium. KfW will make equity investments in selected projects involved in the mining, processing, and recycling of these raw materials. The German government will assume the risks associated with the fund.
Projects, which will generally receive financing between EUR 50 million and EUR 150 million, must demonstrate their contribution to strengthening the German and EU economies through long-term procurement of critical natural resources, including in processed forms, for production sites within Germany and the EU.
Stefan Wintels, CEO of KfW, stated that the global competition for natural resources is intensifying and that the fund represents a crucial step in enhancing the German economy's competitiveness and resilience.