The raw materials fund as a building block of a resilient and innovative economy

In order to be eligible for promotion, it is essential that the following prerequisites are met:

• The project is in the mining, further processing and/or recycling sector.
• The natural resources in question are on the EU Critical Raw Materials List 2023.
• The project is not located in countries subject to sanctions or in countries where Germany/EU supply dependency would be further increased.
• Pure exploration risks are not financed. Financing as part of a pre-feasibility phase is only possible if it is almost concluded and is considered promising by an independent expert assessment.
• The financing need should generally be no less than EUR 50 million and no more than EUR 150 million (in the case of equity, only minority shareholdings by the German Federal Government).
• The project is a long-term project.
• There are specific offtake agreements for production sites in Germany or elsewhere in the EU for at least five years with an extension option. The acquiring companies have their registered office in the EU and at least one subsidiary, branch, permanent establishment or office in Germany, and make the (processed) raw materials primarily available to German/EU industry.
• Industrial leadership / majority shareholding does not lie with the German Federal Government. A possible participation via the Raw materials fund must be accompanied by corresponding voting rights. The project is prepared in accordance with the respective national legislation as well as international environmental and social standards.

Depending on the project, promotion could be provided with diversified financing, in particular with equity instruments. The corresponding conditions would be designed individually for each project and financing instrument. In principle, we assume a positive private investor test (PIT), otherwise involvement would require approval by the EU.

1. Submitting an application: If your project meets the above criteria, please complete the relevant submission form with your contact details and attach the completed Due diligence sheet(PDF, 201 KB, accessible).
2. The projects are pre-selected by KfW in cooperation with the German raw materials agency Deutsche Rohstoffagentur. The decision on the follow-up of a submitted project (appraisal phase) is carried out exclusively by the Federal Government.
3. Appraisal phase:
   1. In the appraisal phase, the Federal Government commissions an independent expert to prepare an assessment of the economic viability and risk justifiability of the respective project.
   2. The available project information is evaluated and/or the due diligence required for the respective project is commissioned by the external expert (including market, technology/geology) and KfW (environmental and social compatibility).
   3. KfW will coordinate with you on the individual design (offtake, governance, environmental and social management, financing instrument, etc.).
4. Decision: The Federal Government alone makes the final decision on the project investment.

• Overview of the raw materials fund (one pager)(PDF, 82 KB, accessible)
• Due Diligence Sheet(PDF, 201 KB, accessible)
• EU Critical Raw Materials List 2023

If you have any questions, please contact us directly.