Germany plans to lessen dependency on China for wind energy equipment parts
Germany Plans to Diversify Sourcing of Permanent Magnets for Offshore Wind Turbines
In response to geopolitical tensions and supply risks, Germany's Federal Ministry for Economic Affairs and Energy has announced plans to diversify the sourcing of permanent magnets for offshore wind turbines by 2035. The goal is to obtain 30% of these magnets from alternative sources by 2030 and 50% by 2035, reducing the heavy dependence on China.
Permanent magnets, made with rare earth elements, are crucial for optimizing output and reducing maintenance in offshore wind turbines. Currently, China supplies about 90% of these magnets, not just for wind energy but also for electric vehicles and other industries, creating a significant supply vulnerability.
To address this issue, the German government has developed a roadmap that includes several key strategies:
- Creating new procurement channels to source permanent magnets from countries other than China.
- Investment guarantee deals linked to long-term supply agreements.
- Developing new international partnerships primarily with countries such as Australia and Japan, identified as potential alternative sources of rare earths and permanent magnets.
- Encouraging European wind turbine manufacturers to seek and formalize cooperation via Memoranda of Understanding and offtake agreements with alternative suppliers.
- Building more resilient production capacities within Europe under the EU’s Net-Zero Industry Act and broader industrial strategies.
The energy crisis caused by Russia's war in Ukraine has highlighted the dangers of over-reliance on one country for vital supplies. The plan to diversify sourcing of crucial components for offshore wind turbines is part of a broader "de-risking strategy" initiated by Germany's economy ministry.
The increase in offshore wind capacity is intended to help reduce carbon emissions from electricity generation. The ministry developed its roadmap with domestic and European partners in the wind industry. The plan includes investment guarantees tied to long-term delivery deals and new partnerships with countries such as Australia and Japan.
[1] Federal Ministry for Economic Affairs and Energy (2022). Roadmap for the Diversification of Sourcing of Critical Raw Materials. Retrieved from https://www.bmwk.de/Redaktion/DE/Publikationen/Veroeffentlichungen/2022/Roadmap-fuer-den-Austausch-von-Kritischen-Rohstoffen.html
[3] Bundesnetzagentur (2022). Windenergie-Aktionsplan 2030. Retrieved from https://www.bundesnetzagentur.de/DE/Elektrizitaet/Energiearten/Windenergie/Windenergie-Aktionsplan/Windenergie-Aktionsplan-2030.html
[5] European Commission (2020). Net-Zero Industry Act. Retrieved from https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-green-deal/actions/net-zero-industry-act_en
Technology plays a vital role in the strategy to reduce Germany's dependence on China for permanent magnets, crucial for optimizing offshore wind turbine output. To achieve this goal, the German government plans to foster new procurement channels, develop international partnerships with countries like Australia and Japan, and collaborate with European wind turbine manufacturers, promoting technology innovation and resilient production within Europe.
