Inside Germany's rare earth treasure chest

"In a World War II bunker east of Frankfurt, a steel door weighing over four tonnes protects Germany's largest reserve of rare earths, a treasure at the heart of rising geopolitical tensions. The exact location of the bunker is confidential and the site is under close video surveillance. This is where Tradium, a German company specialised in trading rare earths, keeps thousands of barrels of the precious materials - almost all from China, the world's biggest producer."

"The materials in the bunker - such as dysprosium, terbium and neodymium - are essential for the manufacture of crucial modern technology including smartphones, electric cars and wind turbines. Tradium, which employs fewer than 40 people, expects to reach a turnover of €300 million this year. In the midst of the US-China trade war, Beijing imposed restrictions in April on rare earth exports, making them subject to licenses with stringent conditions."

"China controls over 60 percent of rare earths mining and 92 percent of refined production worldwide, according to the International Energy Agency. Germany's flagship automotive sector is especially affected by the restrictions because it is dependent on rare earth magnets. China's dominance in the sector has left European industry highly exposed. Matthias Rueth, president and founder of Tradium, said that "nervousness is rising" among his clients. For one industrial customer, any further shortage of rare earths "could go as far as halting production", he said."

A German firm, Tradium, stores thousands of barrels of rare earths in a secure bunker near Frankfurt, most sourced from China. The materials include dysprosium, terbium and neodymium, which are essential for smartphones, electric cars and wind turbines. China imposed export licensing restrictions during the US-China trade war and controls over 60% of mining and 92% of refined production, creating global supply concentration. Germany's automotive sector is particularly vulnerable due to its reliance on rare-earth magnets. Tradium reports rising customer nervousness, potential production halts for some industries, and sharply increased prices amid uncertainty.

Read at The Local Germany