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German Raw Material Fund
German Raw Materials Fund (Rohstofffonds)
The German Raw Materials Fund (Rohstofffonds) is a €1 billion government initiative managed by the KfW Development Bank to secure critical raw materials for domestic industry and reduce dependency on dominant exporters like China.
Key Details & Functionality
- Target Minerals: Focuses on critical and strategic raw materials—such as lithium, cobalt, and rare earths—as defined by the EU Critical Raw Materials Act.
- Funding Scope: Supporting mining, processing, and recycling projects (excluding early-stage exploration).
- Investment Model: Equity and mezzanine financing with minority stakes ranging from €50m to €150m.
- Core Requirement: Must involve 5+ year supply agreements for Germany or the EU.
Example Projects :The fund targets ventures like zero-carbon lithium extraction in the Upper Rhine Plain (Vulcan Energy) and international rare-earth extraction projects (such as Arafura’s).
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