According to a new analysis by McKinsey & Company, up to four million jobs in Germany could be at risk if China imposes a permanent export ban on rare earth elements. This report, cited by Handelsblatt, highlights the critical role these minerals play in Germany"s high-tech economy.
Rare earth elements are essential for various applications, including precision sensors, specialized magnets, and control systems vital to engineering, defense, communications, and aerospace sectors. The analysis indicates that a collapse in supply lines could directly threaten one million jobs in core technology sectors, which generate approximately €150 billion in annual value added.
The potential job losses underscore the importance of rare earth elements to Germany"s industrial value creation. Without access to these critical minerals, a significant portion of the country"s manufacturing and innovation capabilities could be severely impacted.
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