Europe Rare Earth Supply Chains Need More Risk Capital

Interview with geoscientist Martin Erdmann on rare earths “Germany and Europe Lack the Risk Capital Needed for New Supply Chains in Mining.”

2026-03-28 From Detlev Karg 6 min Reading Time

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The debate surrounding the procurement of rare earth elements–particularly against the backdrop of Europe’s lack of strategic sovereignty in this sector–shows no sign of abating. The hurdles for procurement remain significant, as Dr Martin Erdmann of the Federal Institute for Geosciences and Natural Resources explains in an interview with Aerospace & Defence.

Dr. Martin Erdmann: "We need greater awareness of raw material extraction in our society."(Picture: BGR / Peter-Paul Weiler) — Dr. Martin Erdmann: "We need greater awareness of raw material extraction in our society."
(Picture: BGR / Peter-Paul Weiler)

Given the dependence on China in this field, there is considerable discussion about deposits around the world, including in Europe. However, establishing new supply chains, including processing capacity, typically takes at least a decade. The Federal Institute for Geosciences and Natural Resources (BGR) operates under the authority of the Federal Ministry for Economic Affairs and advises policymakers on all matters related to raw materials. Dr Martin Erdmann has authored numerous publications on the subject of rare earth elements.

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