Business · Trade · 11 hrs ago
German industry underestimates risks from critical raw materials
A new analysis says German industry underestimates its dependence on critical raw materials.
The study, by Boston Consulting Group, warns that shortages could stop production across entire industries, not just raise costs.
The risk includes materials that receive less attention than lithium or rare earths because their global markets are small.
China’s limits on tungsten exports have already been linked to a price rise of as much as 500 percent for an important industrial input.
Gallium is another example: its market is worth less than $350 million a year, while products that depend on it are valued at about $3.5 trillion.
Gallium is used in semiconductors, communications technology and AI components, so a supply disruption could affect many high-value products.
The analysis highlights how a relatively small materials market can put much larger parts of industry at risk, but it does not describe any next steps.
German industry underestimates its dependence on critical raw materials, according to a new Boston Consulting Group analysis.
The analysis warns that shortages could halt production across entire industries, not just raise purchasing costs.
After China restricted tungsten exports, the price of an important intermediate product temporarily rose by 500 percent.
Materials with small global markets can pose especially large risks when they are essential to high-value industrial products.
The global gallium market is worth less than $350 million a year, while products dependent on gallium are estimated to be worth $3.5 trillion.
- Who
- German industrial companies, according to a Boston Consulting Group analysis.
- What
- They underestimate risks from dependence on critical raw materials, which could disrupt production.
- When
- The analysis was reported on November 2, 2026. The tungsten price rise followed China’s export restrictions.
- Where
- Germany’s industry is the focus; the article also describes China’s role in the raw-material market.
- Why
- Critical materials are essential to industrial production, and shortages could halt production across entire industries.
This story does not have two clearly opposing sides.
The cost of an important intermediate product temporarily rose by 500 percent.
Handelsblatt reported on a Boston Consulting Group analysis warning that German industry underestimates its raw-material risks.
- Price rise
- 500 percent for an important intermediate product after China restricted tungsten exports
- Gallium market
- Less than $350 million in annual global value
- Products dependent on gallium
- Estimated value of $3.5 trillion
- Gallium uses
- High-performance semiconductors, communications technology and components for artificial intelligence
- Analysis
- Boston Consulting Group study reported by Handelsblatt on November 2, 2026