FT learned about Germany's "opening" of its mines due to a lack of resources

In Germany, abandoned mines are reopening and new deposits are being developed, writes FT. The Ministry of Economy of Germany explained this by the desire for self-sufficiency and indicated that

Germany has begun to open up mines, some of which have been abandoned for decades and are in a dilapidated state, in an effort to reduce its dependence on imports of critical minerals, writes the Financial Times.

The newspaper cites the example of the Käfersteige mine on the outskirts of the Black Forest in southwestern Germany, which has been closed for more than 27 years. The FT writes that the mine's tunnels have long been flooded by flood waters, but its useful resources, including fluorspar needed to build electric vehicles, will help Germany reduce its dependence on imports.

According to the chief executive of Deutsche Flussspat (the new owner of the mine) Simon Bodensteiner, self-sufficiency is vital for the German technological revolution. “If we really want to make a revolution in transport and in the extraction of the resources necessary for it, there is no way around this project. We are almost ready to resume work,” he said.

The FT recalls that each battery in the Volkswagen ID.4 - the company's first electric SUV - requires about 10 kg of fluorspar, also called "litium's little brother". According to the publication, Germany currently imports it in large quantities from Mexico, but demand for it by 2030 may grow from 755 thousand tons per year to 1.1 million tons.

The Käfersteige mine is not the only new mining project in Germany. London-based Zinnwald Lithium plans to develop a huge lithium deposit on the German-Czech border in Saxony, while Vulcan Energy Resources plans to produce lithium from thermal water at Oberrheingraben in southwest Germany, writes FT.

Franziska Brantner, State Secretary of the German Ministry of Economy, explained to the newspaper that the German authorities intend to use the existing potential and prove that environmentally friendly and sustainable mining within the country is possible. She pointed out that as part of Germany's strategy to achieve global climate goals, a "significant risk" is a shortage of critical materials such as lithium, copper and rare earth elements.

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The publication also reports on the development in the EU of the “Law on Critical Raw Materials”, which will establish quotas for domestic production of minerals and reduce regulatory barriers for mining companies.

Since the beginning of the special operation, the EU countries have imposed ten packages of sanctions against RUSSIA and stopped the import of a large number of Russian goods and resources. Germany, Europe's largest economy, has been hardest hit by the restrictions. Thus, since March 2022, inflation peak records have been updated in the country, and in December, 30 out of 49 industry associations in Germany predicted a decline in production in 2023.

As early as August 2022, German companies estimated losses from leaving the Russian market at more than €10 billion, Handelsblatt reported.

The Vice-Speaker of the German Bundestag, Wolfgang Kubiki (FDP), has previously warned that Germany is at risk of becoming a bankrupt state due to the energy crisis. According to him, €110 billion, which is planned to be directed to the import of energy resources after the "unwillingness or impossibility" to supply them from Russia, will not be enough in other areas, these funds "will not be printed and covered with the help of taxpayers."