Raw Materials

Raw materials are regarded by the Federal Government as eligible for support under raw materials policy if there is a macroeconomic interest in their procurement (or the procurement of a specific quality) by a German purchaser.

The following two factors are relevant when assessing raw materials:

Supply bottlenecks for the raw material

• Germany’s high dependence on imports
• Current and/or foreseeable price and supply risks
• The existence of market structures that make it difficult for German end-users to obtain supplies of raw materials
• Restrictions on the conclusion of supply contracts due to political intervention and/or influence (export restrictions, customs duties, etc.)

Use of raw materials in German industries

• Significant importance for labour market policy in the Federal Republic of Germany
• Significance for sustainable macroeconomic and/or regional development
• Strategic importance for macroeconomic development (e.g. future technologies).

These factors provide an overview of the criteria, but do not replace or prejudge the Federal Government’s decision on eligibility (for cover) in the raw materials sector in individual cases.

Raw materials projects with eligibility for funding over the past five years

Over the past five years, projects for the extraction of the following raw materials have been deemed eligible for support on the basis of their contribution to the raw materials sector:

Metals / Semimetals

• Iron ore
• Ferroniobium
• Graphite
• Cobalt
• Copper
• Lithium
• Nickel
• Platinum group metals
• Rare earths
• Tungsten

Energy commodities

• Liquefied natural gas (LNG)

Processed raw materials and intermediate products

Since there are often no facilities for processing of unprocessed raw materials (e.g. ore, concentrates) in Germany, processed raw materials and intermediate products have been accepted as eligible for cover on a case-by-case basis. Furthermore, the import of secondary raw materials (raw materials gained by recycling) has also been considered as in principle eligible for cover on a single-case basis.
 

Concerning the eligibility for cover, the following competence centres for raw materials provide further information about non-listed raw materials:
 

• Deutsche Rohstoffagentur (DERA) (German Mineral Resources Agency)
  Assessment of the concentration of supply of mineral resources as well as potential supply risks (study: “DERA-Rohstoffliste”)
• „Critical Raw Materials for the EU“ (study by the EU Commission):
  Evaluation of the supply situation for the countries within the European Union and      assessment of the raw materials’ criticality based on its economic importance

Since the criteria used as basis for these lists of (raw) materials may deviate from those used by the Federal Government, Euler Hermes should be contacted and an enquiry should be filed in order to receive a reliable indication on the eligibility for cover.

With regard to energy raw materials, the Federal Government takes account of existing national energy policy. As far as crude oil is concerned, the Federal Government generally assumes that a functioning global market exists and that the criteria for raw materials that are eligible for cover under the raw materials policy are not usually met. Other fossil fuels of secondary importance to Germany’s energy supply (e.g. LPG) have not, to date, been regarded as eligible for support under the raw materials policy.

Please do not hesitate to contact our specialists who will be pleased to assist you with any questions regarding raw materials in connection with Untied Loan Guarantee at any time.