Bernhard Kluttig, Director-General for Industrial Policy at Germany’s Ministry for Economic Affairs and Climate Action, will attend IMARC 2024. He plans to discuss building closer economic ties with Australia and Europe’s increasing demand for Australian critical minerals and energy.
Before his arrival, Mining Beacon editorial director Richard Roberts spoke with Kluttig.
How many times have you been to Australia/IMARC?
This is my first visit. Australia’s beauty and unique culture fascinate me, but I won’t have time to explore this trip.
IMARC is an incredible opportunity to learn about the mining sector and meet key Australian stakeholders. I’m also excited about the German-Australian afternoon hosted by the German-Australian Chamber of Industry and Commerce.
What are your primary aims while here for IMARC/at the show?
I aim to promote cooperation that drives growth in both countries. Engaging with government officials, industry leaders, and NGOs will help foster stronger partnerships. I’m keen to explore synergies between Australian and German resource policies to benefit both nations.
Building deeper connections with the Australian government and businesses will provide valuable insights into policy shaping.
What are your impressions of Australia’s mining industry?
Australia’s mining industry is impressive and critical to the global supply chain. Australia is known for a large variety of mining projects, ranging from traditional metals such as gold, iron, bauxite to the critical minerals such as lithium, nickel and graphite.
This demonstrates the sector’s diversity and ability to adapt to the changing needs of industry.
Germany plays a key role in providing advanced technology and equipment for mining. More than 150 German companies, from giants like Siemens to small innovators, support the Australian mining industry. Some, like Bind-X, Herrenknecht, and Dräger, are exhibiting at IMARC’s German Pavilion.
All these German companies continuously develop new and high-quality and environmental-friendly technologies. Therefore, they can assist in modernising sectors and/or building sustainable ways for production processes.
The German–Australian Critical Minerals Alliance was formed in 2022. How important is this alliance?
Germany and Australia have a strong economic relationship. Germany is Australia’s largest EU trading partner, and bilateral trade hit €17 billion in 2023.
Australia will benefit by exporting raw materials to Germany, especially critical minerals. The alliance is crucial for fostering cooperation between companies in both countries. For example, Siemens Gamesa signed an offtake deal with Arafura Rare Earths, backed by the German Government.
The alliance supports projects like this and accelerates green and digital transitions.
What would you say have been the most significant milestones to date and how do they affect Germany’s economic/industry goals?
Australia has significant deposits of raw materials that Germany and Europe urgently need for the transformation of its economies and to achieve its climate targets. One of the milestones we therefore concluded together is a joint declaration of intent in 2023 on the potential to create value in the field of critical raw materials.
Together, we commissioned a study to identify ways to strengthen supply chains between our two countries.
What does Germany’s critical minerals demand profile look like over the next years?
Germany’s demand for critical raw materials, like lithium, nickel, and rare earths, will increase as industries transform. Technologies such as e-mobility, wind turbines, and solar panels will drive this demand. For example, Germany’s wind power expansion will require 5,500 tonnes of rare earths by 2030.
What will be the key drivers for the demand of critical minerals?
The International Energy Agency predicts that by 2040, demand for lithium could increase by 42 times. Other critical materials, such as rare earths, could rise by seven times. Factors like e-mobility, renewable energy expansion, and industrial transformation will fuel this demand.
How will sourcing evolve over that time horizon?
In the short term, industries will heavily rely on primary raw materials. In the long run, recycling and circular economy practices will help reduce dependency and improve resource security.
What are the aims of Germany’s climate protection contracts, or carbon contracts for difference (CCfDs)?
Germany’s carbon contracts for difference (CCfDs) aim to help companies reduce carbon emissions by offsetting decarbonisation costs. These contracts encourage industries like steel, chemicals, and paper to adopt climate-friendly technologies. The first bidding process for CCfDs ended in July 2024, with a funding volume of €4 billion ($6.5 billion).
How have they been received by industry?
The response has been very positive, with 20 applications received in the first bidding round. Many projects focus on innovative technologies that contribute to climate neutrality.
For more information, visit the IMARC 2024 website.