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How Dependent Is Germany on Raw Material Imports? An Analysis of Inputs to Produce Key Technologies

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Listed:
  • Lisandra Flach
  • Isabella Goruevich
  • Leif Grandum
  • Lisa Scheckenhofer
  • Feodora Teti
  • Isabella Gourevich

Abstract

The Ukraine war and geopolitical tensions pose major challenges for supply chains. Whereas shortages of microchips became a symbol of supply chain disruptions during Covid-19, a survey from June 2022 from the ifo Institute shows that over 74% of German manufacturing firms report production disruptions due to shortages of different types of inputs and raw materials. The production of key technologies that are necessary, for instance for the energy transition, often depends on imported raw materials. Therefore, it is important to evaluate Germany’s raw material dependencies at the product level to identify the risk of future supply chain disruptions. This paper identifies nine critical raw materials, which have a high degree of supplier concentration and are used in more than half of the key technologies. For these raw materials, we provide a detailed analysis on Germany’s dependency on imports.

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  • Lisandra Flach & Isabella Goruevich & Leif Grandum & Lisa Scheckenhofer & Feodora Teti & Isabella Gourevich, 2022. "How Dependent Is Germany on Raw Material Imports? An Analysis of Inputs to Produce Key Technologies," EconPol Policy Brief 43, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:econpb:_43
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    File URL: https://www.ifo.de/DocDL/EconPol-PolicyBrief_43.pdf
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