Innovative raw material chains and circular cycles are becoming increasingly important
Raw materials are becoming increasingly expensive and scarce on the international market. Therefore, the Ministry of Economic Affairs commissioned a study to examine the supply of key primary and secondary raw materials to industry in North Rhine-Westphalia up to 2035 and to highlight the importance of the circular economy in the face of dwindling resources.
The results of the raw materials study prepared by the RWI – Leibniz Institute for Economic Research are now available and provide a sound basis for the development of a sustainable and future-oriented raw materials strategy for North Rhine-Westphalia.
Minister for Economic Affairs and Digitalization, Prof. Dr. Andreas Pinkwart: “The pandemic has severely disrupted international supply chains. With the restart of the global economy, raw materials and supplies are now significantly more expensive and in some cases completely unavailable, making it difficult for industry to meet the high demand. The pandemic is not the only cause. Key industries in North Rhine-Westphalia are facing a fundamental transformation with major implications for raw material requirements and are particularly affected by market fluctuations. Only with a forward-looking, effective raw materials policy can we ensure the preservation of industries and the successful establishment of future technologies.”
Key findings of the report
- Prices for metallic raw materials began to rise significantly during the Corona pandemic. For industry in North Rhine-Westphalia, these rising metal prices are a burden that could affect economic recovery and technological transformation.
- Of the raw materials that will be particularly relevant for the future technologies of key industries in North Rhine-Westphalia, 20 pose a high risk and 15 a medium risk. The reasons for this are future demand trends as well as the concentration and political stability of the producing countries. These include rare earths and battery raw materials, as well as bulk commodities such as titanium and zinc.
- The key industries in North Rhine-Westphalia are facing a transformation with implications for raw material demand: the chemical and metal industries must switch their energy base to green hydrogen, car manufacturers must introduce electrified drives, and the electrical and electronics industries as well as mechanical engineering must switch to future technologies.
- There is an export surplus for non-metals. In 2020, North Rhine-Westphalia exported stones and earths worth over €300 million, representing a quarter of Germany's total exports in this sector. Approximately half of this was gravel and sand, primarily exported to the Netherlands and Belgium.
To ensure a future supply of the necessary materials, the use of secondary raw materials – as high-quality, reprocessed materials – must be increased. This gives the circular economy great importance.
“The study clearly demonstrates the necessity and advantages of a circular economy, in which we use resources sparingly through innovative cycles. North Rhine-Westphalia has all the prerequisites to become a pioneer in this area. As the state government, we want to contribute to this development through further development of the legal framework and effective research funding.”
Prof. Dr. Andreas Pinkwart:Minister for Economic Affairs and Innovation
For most raw materials that will be particularly relevant to key industries in North Rhine-Westphalia in the future, substitution and recycling rates are currently still relatively low. Potential for secondary raw materials arises primarily from the recycling of end-of-life products and aims to return the raw materials they contain to the material cycle. Raw material losses can also be reduced through the development of efficient circular systems and the curbing of scrap exports. A strong circular economy requires product designs optimized for recycling, the expansion of recyclable material collection, the improvement of recycling technologies, and the expansion of recycling capacities.
The raw materials report also develops recommendations for action in other areas, such as:
- Setting up a raw materials information tool
- Establishment of a think tank for resource efficiency and policy
- Establishment of research factories, demonstration centers, centers of excellence and pilot plants
- Integration of raw materials topics into the curricula of general education schools
- Establishment of an Advisory Board for Resource Efficiency and Raw Materials Policy
- Awarding of a resource efficiency prize
