Conference: Creating and Securing Growth - Germany and Europe as Industrial Hub: Strengthening Energy Security and Resilience
05 November 2025, Berlin
The expert conference “Creating and Securing Growth,” organised by EIES and the Konrad Adenauer Foundation, brought together leading figures from politics, business, and academia to tackle one of Europe’s most pressing questions: How can the continent maintain its industrial base, secure energy supply, and at the same time manage the transition to climate neutrality? The discussions revealed both the scale of the challenge and the urgency of a strategic realignment.
The Starting Point: Stagnation and Dependence
Germany is currently in a period of negligible economic growth. Industrial competitiveness is declining, supply chains are fragile, and geopolitical tensions are intensifying the pressure. The greatest risk lies in dependence on a small number of global players—especially China. Critical raw materials such as lithium, cobalt, and graphite, essential for batteries and key technologies, come up to 90% from China. Export controls and strategic measures further complicate access to these resources.
The result is a dangerous vulnerability. Europe faces the task of reorganising its raw material supply to avoid a situation in which economic and political freedom of action is constrained. At the same time, the transition to climate neutrality must succeed without jeopardising the industrial base. The tension between climate goals, competitiveness, and supply security shapes the entire debate.
Three Strategic Levers for Europe’s Future
The conference highlighted three key areas that will determine the continent’s industrial future:
1. Strategic Raw Material Policy
Europe is resource-poor and must both develop domestic sources and strengthen partnerships with third countries. Lithium deposits in the Upper Rhine Valley or northern Germany could be part of the solution if permitting processes are accelerated and investments mobilised. At the same time, the entire value chain—from exploration to processing to recycling—needs to be strengthened.
2. Resilient Supply Chains
Recent years—from the pandemic to the Ukraine war to China’s latest export controls—have shown how vulnerable global structures are. Reliance on single suppliers is a risk Europe can no longer afford. Diversification, European cooperation, and strategic stockpiling are long overdue.
3. Critical Infrastructure and Energy Security
Without stable energy supplies and digital resilience, any economic policy is meaningless. Battery storage, grids, and control systems are both a potential Achilles’ heel and a geopolitical lever. Integrating renewable energy requires massive investment in storage technologies and smart grids, all while protecting against cyberattacks.
Europe Between Ambition and Reality
The European Investment Bank (EIB) plays a central role in financing this transformation. It invests across the entire value chain—from mining to recycling to substitution of critical materials. Two billion euros are already earmarked for raw material projects, with potential for further increases. The bank focuses on cleantech and innovation, evaluating projects not only financially but also technologically. The goal is a fully integrated European value chain that reduces dependence and strengthens competitiveness.
But time is running out. Geopolitical conditions are volatile, markets are manipulated, and the idea of returning to a 'stable old world' is unrealistic. Europe must act—quickly, decisively, and in a coordinated manner.
Growth Policy with Speed and Realism
The discussion made clear that Europe needs a new economic policy that goes beyond regulation. Incentives for investment, output-based support rather than mere factory subsidies, and a capital markets union are central elements. The U.S. provides examples: the Inflation Reduction Act combines production incentives with protection against cheap imports, giving companies long-term planning security. Europe, in contrast, remains stuck in debates over tariffs without building comparable tools.
The challenge is not just financing—it’s speed. Permit approvals can take years while other regions move ahead. Without dramatic acceleration, Europe risks falling behind.
Practical Examples: From Lithium to Recycling
Panels provided concrete insights into projects that could drive Europe’s raw material transition:
Lithium from Thermal Water
A company plans to extract lithium from thermal water in the Upper Rhine Valley—CO₂-neutral and potentially covering up to 40% of Europe’s demand. The process combines resource extraction with energy production and could serve as a showcase for sustainable industrial policy. However, financing and permits are slowing progress.
Permanent Magnets for High-Tech and Defence
A German manufacturer produces permanent magnets essential for medical technology, e-mobility, and defence. 90% of the required raw materials come from China. The dependence is so high that a supply chain disruption could paralyse entire industries. Strategic partnerships and European support programmes are urgently needed.
Battery Recycling as a Circular Economy Solution
A start-up in Aachen focuses on battery recycling with over 90% recovery rates. It aims to process black mass—a product of shredded batteries—within Europe. Currently, over 90% of these materials are exported to China. Without clear rules and incentives for local processing, the circular economy remains a mere slogan.
Made in Europe—More Than a Label
Calls for a European platform for raw materials, recycling, and battery technologies were a recurring theme. The focus is not just on production but on the entire value chain—from exploration to processing to software control. Resilience comes at a cost, but the price is far lower than the risks of continued dependence. Europe must create the conditions for companies to invest without losing out in global competition.
Energy Security and Cyber Risks: The Underestimated Threat
By 2030, 116 gigawatts of large-scale battery storage are expected to be integrated into the European grid—more than all nuclear power plants combined. These storage systems are crucial for integrating renewables and stabilising the grid. Yet 75% of the market is controlled by Chinese manufacturers. This dependence is not only economic but also a security risk.
Batteries are critical infrastructure. Manufacturers often retain direct control over their systems—a potential gateway for cyberattacks. The prospect of geopolitical rivals accessing key parts of Europe’s energy supply is alarming. Digital resilience must be taken as seriously as physical security, including clear software standards, mandatory security audits, and a European security architecture addressing cyber risks systematically.
Human Rights and Sustainability: Responsibility in the Raw Material Boom
Beyond geopolitics and economics, responsibility comes to the fore. Mining is high-risk, often linked to environmental destruction and human rights violations. Europe must ensure that raw material partnerships with third countries do not create new dependencies but are conducted on equal terms. This means investing in local value creation, adhering to ESG standards, and maintaining transparent supply chains.
Companies increasingly rely on sustainability reporting and certifications, but implementation remains challenging. Demand for critical raw materials will far exceed supply in the coming years. Recycling can meet part of the demand but cannot close the gap entirely. Mining projects are unavoidable—and must meet strict ecological and social standards.
Conclusion: Urgency Over Wishful Thinking
The conference underscored that Europe faces a raw material transition that will determine prosperity and security. Strategies exist, but speed and consistency are lacking. Geopolitical realities allow no delays. Anyone expecting globalisation to return to its old form is mistaken. Europe must reposition itself—with industrial policies that incentivise investment, partnerships that enforce standards, and a security framework that ensures both digital and physical resilience.
The coming years will show whether Europe can make the leap. The alternative is dependence that constrains not only economic but also political freedom. Independence costs money—but dependence costs freedom. The decision must be made now.