German Chancellor Olaf Scholz announced a new, expanded commodities partnership with Chile on Sunday during a tour of South America that Berlin hopes will help secure more access to critical minerals key to the transition to a green economy.
Europe’s largest economy has fallen behind in the race for critical minerals in part due to a distaste for the dirty business of mining as well as faith in the open market, German government officials say.
That has led to a reliance on China, which has invested widely in the mining sector in resource-rich South America and in processing commodities.
Now though, soaring demand for critical minerals and geopolitical concerns are sparking a push to better secure and diversify supply for example through offtake agreements, stakes in mines or possibly the establishment of Germany’s own processing capacity.
Scholz seeks to secure more critical minerals on South America tour
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