German Chancellor Friedrich Merz called on the European Union to establish stockpiles of critical raw materials on November 5, arguing that new mining projects alone cannot secure supply chains. He made the proposal at an economic conference in Berlin, Germany, as European manufacturers remain exposed to concentrated refining and processing capacity.
Merz said governments should diversify supply, strengthen recycling and develop strategic inventories at the European level. The proposal would add a demand-security tool to the European Union’s existing focus on faster project approvals and investment in mining and processing.
Critical minerals are used in electric motors, batteries, semiconductors, defence systems and other advanced industrial products. For several materials, extraction is spread across more countries than specialised refining, separation or component manufacturing, leaving European supply vulnerable to restrictions and interruptions beyond the mine gate.
Design and procurement decisions
Reserves could help manufacturers manage temporary interruptions if stockpiled materials were released during a supply shock. Inventories could also provide more predictable demand for selected producers and refiners, depending on which materials were included and how much was held.
The programme’s design would need to specify whether reserves contained ores, intermediates or refined products, and who could authorise their release. Some materials are relatively easy to store, while others require complex chemical handling, carry degradation risks or have rapidly changing industrial specifications.
A European programme would require decisions on funding, procurement rules and ownership, as well as storage sites and coordination among member states. Large-scale purchasing could affect prices in markets that are already narrow and volatile.
Policy proposal, not procurement plan
Merz did not announce an approved European Union procurement budget or a binding stockpiling mandate. Implementation would require decisions at European and potentially national levels.
Mining and processing investment would still be needed because inventories could bridge disruptions but not replace long-term supply capacity. A properly designed reserve system could become an additional customer or offtake mechanism for European mining, refining and recycling companies.
The proposal’s immediate significance is political: a major European Union economy is advocating a coordinated buffer against supply interruptions. Its commercial importance would depend on whether the proposal leads to funded procurement rather than remaining an expression of strategic intent.
