Mining 2026 Comparisons

As one of the world’s leading industrial nations, Germany consumes large quantities of mineral resources. In terms of sourcing these resources, Germany is one of the world’s largest producers of lignite, raw kaolin, rock salt (including evaporated salt and brine) and potash. According to the Federal Institute for Geosciences and Natural Resources’ report on the commodity situation in 2023, 534 million tonnes of mineral resources were produced. Considerable quantities of lignite (102.1 million tonnes), petroleum (1.6 million tonnes), methane gas, petroleum gas and mine gas (4.8 billion cubic metres in total) were also produced.

Germany also has significant unexploited geological potential for critical raw materials. For example, Germany has one of the largest estimated reserves of lithium worldwide. Initial lithium extraction projects are currently under way and production is expected to increase. There are also substantial copper and tin deposits. Exploration efforts for critical raw materials are increasing significantly, providing good business opportunities for both domestic and international mining companies.

The German legal system is based on civil law and extensive codification by parliaments, which is sometimes based on Directives and Regulations from the European Union (EU). Mining operations are regulated at a national level, as well as by the 16 federal states.

The most fundamental legal basis is the Federal Mining Act (Bundesberggesetz, BBergG). This Act regulates the exploration, mining and processing of mineral resources, including their loading, transport, unloading, storage and disposal. The Act also contains provisions for restoring the surface during and after exploration, mining and processing.

The Federal Mining Act is supplemented by the General Mining Ordinance (Allgemeine Bundesbergverordnung, ABBergV), the Mining Projects Environmental Impact Assessment Ordinance (UVP-V Bergbau) and other legislation. These ordinances primarily concern technical aspects, as well as safety and procedural provisions.

Classification

In Germany, the classification of mineral resources determines ownership. There are three categories.

Bulk surface minerals (eg, sand, gravel, limestone, gypsum and clay)

These minerals are not subject to mining law when quarried, but are instead regulated by general state and environmental law. They are legally owned by the owner of the property on (or under) which they are located.

Federally defined owner-linked subsurface minerals (grundeigene Bodenschätze)

These include quartz, feldspar, kaolin and bauxite. These minerals are also owned by the property owner, but their extraction requires approval under the Mining Act.

“Free-to-mine” (bergfrei) minerals (eg, lignite, potash, iron, copper, lithium, oil and natural gas)

These are not part of the property owner’s title. They can be extracted by anyone with a licence, which is allocated by the state on a first-come, first-served basis due to their exclusive nature. Geothermal energy from wells deeper than 400 metres (deep geothermal energy) is also classified as a free-to-mine resource and is therefore subject to mining law. Conversely, geothermal energy close to the surface is not subject to mining law.

Types of Licence

The Federal Mining Act distinguishes between three types of licence for mineral resources governed by mining law:

• the permit;
• the approval; and
• the mining property.

Permit

A permit grants the holder the exclusive right to explore for specific mineral resources in a specific area. Any mineral resources that must be removed for exploration purposes may be extracted and taken into the ownership of the permit holder. Permits are limited to a maximum of five years and can be extended by up to three years. A permit is granted provided that all requirements set out in the Federal Mining Act are met.

Approval

Approval grants the right to explore and extract free-to-mine mineral resources at a particular licensed mining site. Approval is granted for a period appropriate to the extraction in each case. A period exceeding 50 years may only be granted if necessary due to the investments usually required for extraction. An extension may be granted.

Mining property

Mining property constitutes a special form of proprietary right and is established by an administrative act. It is then registered in the land register as a right equivalent to land ownership. It comprises the rights and obligations associated with granting a licence, as well as allowing mortgage lending and the registration of easements. The provisions regarding the limitation period correspond to those of the licence. To apply for mining property, the applicant must already hold a licence for the specified mining field.

Assignment

Approval grants the right to demand assignment of title. Assignment of title is only permissible if acquisition of the land is not possible or reasonable under the appropriate conditions, and if attempts to reach a usage arrangement for the implementation of the project have been unsuccessful. The assignment of title may include ownership, possession or other rights relating to the land. The mining company must pay compensation for the assignment of title, based on the value of the property in question. Additionally, compensation must be paid for loss of earnings, reduction in value and relocation costs.

Operating Plans

The granting system under the Federal Mining Act provides for a two-stage approval process. In addition to the licences mentioned above, an approved operating plan is required for exploration or extraction operations. While the various licences grant the general right to conduct mining activities, operating plans provide detailed regulations for conducting those activities, including provisions relating to safety and environmental protection.

The Sate plays a dual role as guarantor and regulator of mining. The federal and state parliaments and governments establish the legal framework that determines whether mining is permissible and how it should be carried out. Mining authorities enforce these laws, grant licences for the exploration and extraction of mineral resources, and monitor mining activities to ensure compliance with legal and environmental standards.

There are no mandatory national or government joint ventures, contracts or participation. The State is not financially involved in mining itself; it only charges fees or taxes for mining activities. For exploration, the permit holder must pay EUR5 per square kilometre in the first year. This fee increases by EUR5 each year up to a maximum of EUR25. Holders of approvals or mining properties must pay an annual extraction tax equalling 10% of the market value of the resources extracted or co-extracted within the approval area during the respective year. However, the federal states can set different amounts for the fee and the extraction tax. Provided they have a licence and comply with the regulatory framework, mining companies are free to operate.

Mineral rights do not have a constitutional basis in Germany, but are derived from legislation. The legal basis is therefore the Federal Mining Act. Mineral rights are granted as licences by the mining authorities (see 1.3 Ownership of Mineral Resources). Although the rights granted by the licence are not property rights, the property regulations generally apply. Mining property constitutes a special form of proprietary right. Licences are transferable and, in the case of mining property, alienable with the approval of the mining authority. Once granted, a mining licence is protected by constitutional property rights, meaning it can only be revoked in accordance with constitutional law.

Ownership of mineral resources is acquired by the holder of the mineral rights upon extraction, or more specifically upon taking possession of the mineral resources. Constitutionally protected rights to the mineral resources themselves only arise after extraction. Licences for exploration and extraction do not yet confer ownership rights to mineral resources.

Mineral rights are granted by the relevant mining authority in the form of licences. Such a licence is considered an administrative act under German law. The mining authorities of the federal states are responsible for enforcing the Federal Mining Act, including the granting of licences.

While most federal states have their own mining authority, the Lower Saxony State Office for Mining, Energy and Geology is also the responsible authority for the federal states of Schleswig-Holstein, Bremen and Hamburg. Berlin does not have its own mining authority; instead, the Brandenburg State Office for Mining, Geology and Natural Resources is responsible.

Under the Federal Mining Act, licences grant the holder exclusive use rights for a limited period of time. A permit for exploration activities is valid for a maximum of five years and can be extended by a further three years. The term of approval for extraction rights and mining property depends on the particular case, but should be granted for an appropriate period for carrying out the extraction. A term of more than 50 years is only permissible if it is deemed necessary in light of the investments typically required for extraction. Extension of the approval or mining property rights until the deposit is expected to be exhausted is possible.

An exploration permit provides priority rights for the mineral resources covered by the permit within the exploration area. Applications for mining approvals must be communicated to the party entitled to explore. If the permit holder also submits an application for a mining approval within three months, this takes priority over all other applications.

Licences are transferable and, in the case of mining properties, alienable with the approval of the mining authority. The competent authority may only refuse approval on the exhaustive grounds listed in the Federal Mining Act relating to the new licence holder. Reasons for refusal include lack of reliability and failure to provide proof that the financial resources required for exploration or extraction can be raised.

The competent authority shall revoke the licence if reasons for refusal arise after it has been granted. If a permit holder does not initiate exploration within one year due to reasons for which they are responsible, the permit shall be revoked. However, the competent authority may extend the deadline by one year if there are good reasons for doing so. Additionally, the (exploration) permit may be revoked if the holder does not apply for approval to extract mineral resources, despite meeting the necessary requirements.

Approval shall also be revoked if extraction is not initiated within three years, or if extraction is interrupted for three years. These provisions shall not apply if the technical or economic planning of the approval holder requires it, or if they are not responsible for the delay. The same regulations apply to mining property with a ten-year time limit.

An approved operating plan is required for the operation of mineral resource exploration or extraction sites. The relevant mining authority must approve this plan and monitor compliance with it. Those authorised to explore or extract must provide the competent authority with the necessary information and documents for monitoring purposes. The mining authority’s supervisory powers are extensive and include on-site inspections. Orders exceeding the approved operating plan may be issued afterwards to protect the lives, health and property of employees or third parties.

In Germany, environmental laws are set out in various Acts and Ordinances as well as EU Regulations. For example, the Federal Mining Act, the Water Resources Act (WHG), the Environmental Impact Assessment Act (UVPG) and the Federal Nature Conservation Act (BNatSchG) govern environmental law provisions for mining activities.

In particular, strict requirements arise from the obligation to conduct an environmental impact assessment. The operating plan must include protective measures to minimise negative effects on water, soil, air and natural ecosystems. These include measures to reduce dust and noise, comply with emission limit values and regularly monitor environmental impacts. The Mining Projects Environmental Impact Assessment Ordinance specifies when an environmental impact assessment must be conducted for mining projects.

If an environmental impact assessment is required, the public affected by the project shall also be involved. This involves publishing the plan and relevant environmental impact documents, and providing an opportunity for those affected to submit statements.

Depending on the type of operating plan, either a single proceeding led by the mining authority of the federal state reviews the requirements of environmental laws, or separate proceedings must be conducted by the respective environmental authorities. A concentrated approval process is always carried out by the relevant state mining authority when an environmental impact assessment is required.

As required under EU law, Germany has a network of nature conservation areas known as “Natura 2000”. These protected areas are subject to specific restrictions under nature conservation law. The EU’s legal requirements for establishing and protecting the Natura 2000 network are set out in the Federal Nature Conservation Act (Bundesnaturschutzgesetz, BNatSchG).

According to the Federal Nature Conservation Act, any activities that could significantly impact a Natura 2000 area are prohibited. Therefore, projects such as mining activities must usually be assessed for their compatibility with the conservation objectives of any affected Natura 2000 areas before they are approved. If negative effects are likely, exemptions allowing mining activities – despite their adverse impact – may be granted for reasons of overriding public interest, including social or economic reasons, provided there are no reasonable alternatives for achieving the project’s objectives elsewhere that would have less or no impact. However, no exemption may be granted for fracking activities.

Particularly strict requirements apply if habitats or species of public interest – eg, due to their global distribution – may be affected. For areas hosting such priority natural habitats or species, an additional condition for approving a plan is that it is necessary for reasons of human health or public safety, has positive environmental effects or is in the public interest. Such reasons of public interest may only be considered if the relevant authority has obtained an opinion from the European Commission. Priority habitats and species are conclusively listed in the Habitats Directive (92/43/EEC).

Additionally, there are nature reserves, national parks and other specially protected areas that are independent of Natura 2000 and have special legal protection. According to the Federal Nature Conservation Act, interventions in nature and the landscape usually require compensatory and remedial actions to be implemented.

If an environmental impact assessment is required as part of the approval process, public participation takes place. During this process, the environmental assessment report and other project-related documents are published for at least one month, during which time parties affected by the project, as well as environmental associations, have the opportunity to submit statements. A meeting is also held to discuss the objections and statements with the project owner, the authorities and those affected. Once the authority has made its decision on the environmental impact assessment, the decision will be published.

The public should be involved at an early stage in projects that have more than a minor impact on the interests of a large number of third parties. The project owner should inform those affected about the plan’s objectives, how it will be implemented and its expected impacts. The Federal Mining Act also provides for municipal participation in the approval of operating plans.

If an environmental impact assessment is required, the mining authority must carry out prior and informed consultation. The project developer must submit a report on the expected environmental impact of the project to the authority. The authority publishes the report and the plan for at least one month, during which time it accepts comments and objections from the affected public and environmental organisations. A meeting is also held to discuss the objections and statements with the project owner, the authorities and those affected. Public participation is also mandatory if a facility relevant to major accidents is to be built or modified, and if the appropriate safety distance to neighbouring protected objects is not maintained.

The Sorbs are a traditional community in Germany, located in an area of central Germany where lignite is extracted. However, their interests are protected by general rules, and mining activities are not specifically limited.

German mining law does not allow for community development agreements to be made for mining projects. Although public consultations can take place during the approval process, the granting of licences is governed by law and is not subject to specific agreements with local communities.

Germany has implemented a number of ESG policies and regulations, most of which are a consequence of EU legal requirements. The main EU-level ESG laws include:

• the Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464, CSRD), which obliges companies to report on ESG-related topics; and
• the Non-Financial Reporting Directive (Directive 2014/95/EU, NFRD).

The Corporate Sustainability Due Diligence Directive (Directive (EU) 2024/1760, CSDDD) establishes due diligence obligations for companies regarding their own activities and those of their supply chain. The EU Taxonomy Regulation (Regulation (EU) 2020/852) establishes a framework for classifying economic activities and investments as environmentally sustainable.

In accordance with the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG), businesses in Germany must also meet due diligence obligations with regard to human rights and environmental standards in their own activities and those along the supply chain. The EU Critical Raw Materials Act (Regulation (EU) 2024/1252, CRMA) establishes priority status and approval timeframes for strategic extraction and circular economy projects, driving early-stage exploration programmes and accelerated permitting for designated materials (including lithium, rare earths, cobalt and copper).

Illegal mining is not an issue in Germany, nor does it disrupt the production of legal minerals. As a highly regulated state with efficient authorities and long-established NGOs, Germany ensures that legal requirements are usually met by businesses.

The Berchtesgaden salt mine is one example of positive community relations in mining. This active mine offers tours and attractions for visitors, thereby promoting community acceptance. The mine is therefore an important employer in the region and a key attraction for local tourism.

There are also positive examples of reuse in Germany. After its closure, the “Zeche Zollverein” coal mine in Essen was redeveloped and turned into a museum and park, becoming a popular tourist destination. The site has been a UNESCO World Heritage Site since 2001.

In contrast, the Garzweiler II opencast lignite mine is a negative example of social acceptance. When the mine was to be expanded and a village demolished for this purpose, many people gathered in protest camps, and there were significant protests and demonstrations. Ultimately, the police had to clear violent demonstrations.

Germany has set itself the legally binding goal of becoming carbon-neutral by 2045, which exceeds even European targets. Consequently, there are numerous initiatives to implement this goal. These initiatives are driving the mining industry to reduce emissions, adopt clean technologies and switch to renewable energy sources in general. One direct consequence of these climate protection initiatives is the phasing out of lignite mining in Germany by 2038.

Germany and the EU have developed comprehensive climate change legislation. The German Federal Climate Protection Act (KSG) sets out the goal of achieving greenhouse gas neutrality by 2045, along with a series of interim targets. The EU’s Emissions Trading System (ETS) introduced a cap-and-trade system. Additionally, the fuel emissions trading system covers the placing of fuels on the market in the buildings and transport sectors.

The CSDDD obliges some large companies to adopt and implement a plan to mitigate the effects of climate change, including the goal of achieving climate neutrality by 2050. The Industrial Emissions Directive (Directive 2010/75/EU) requires an environmental management system, including a transformation plan, to be introduced for the extraction and processing of certain ores. The Methane Regulation (Regulation (EU) 2024/1787) will have a significant impact on the mining industry due to its strict requirements regarding methane emissions during the exploration, production and processing of oil and gas, and coal mining.

The German Sustainability Strategy, last updated in 2025, is based on the United Nations’ 17 Sustainable Development Goals and the German Raw Materials Strategy. Together, they provide a holistic and integrative approach to sustainable development. The circular economy, resource efficiency and the expansion of domestic mineral resources to ensure resilience are central to the Raw Materials Strategy.

It is also worth mentioning that the development and use of carbon capture and storage (CCS) and carbon capture and utilisation (CCU) projects is being promoted. Though CCS was prohibited in Germany for a long time (except for research purposes), a political turnaround is currently taking place. Additionally, efforts are being made to accelerate the expansion of geothermal energy, which is covered by the provisions of the Federal Mining Act. Germany is a member of the international Extractive Industries Transparency Initiative (EITI) and supports initiatives such as the World Bank’s Climate-Smart Mining Strategy, which aims to make the mining sector more climate-sensitive and environmentally friendly, as well as the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF).

The EU Critical Raw Materials Act, which came into force in May 2024, addresses the growing demand for 34 different raw materials that are particularly critical for the energy transition. The Regulation aims to improve and diversify the EU’s supply of critical raw materials, strengthen circularity (including recycling) and support research and innovation in resource efficiency and substitute development. Furthermore, the Regulation establishes criteria for strategic projects relating to the extraction or recovery of critical raw materials. These projects are given priority status and may receive financial support. The EU has set a target to extract at least 10% of its critical raw material consumption and process 40% within the EU by 2030.

Under the directly applicable CRMA, Germany is required to establish a national exploration programme. This programme aims to identify and evaluate the potential of critical and strategic raw materials in Germany, with the intention of creating incentives for their development. The first exploration report was submitted to the European Commission in June 2025.

As with all companies in the commodities sector, mining companies are subject to trade and corporate tax. Those in the legal form of a corporation, with their head office or management in Germany, are subject to unlimited corporate tax. Those that do not have their head offices and management in Germany are subject to corporate tax on income generated in Germany. Corporate tax is a direct tax on a company’s income and currently stands at 15%. Trade tax is based on a mining company’s profits. The rate is 3.5% of the objective profit potential, multiplied by specific tax rates set by the municipality.

In addition, special levies apply to mining activities. As mentioned in 1.4 Role of the State in Mining Law and Regulations, for exploration, the permit holder must pay EUR5 per square kilometre in the first year. This fee increases by EUR5 each year up to a maximum of EUR25. Expenses incurred in the permit area for exploration in the respective year are set off against the fee. The holder of an approval or mining property must pay an annual extraction tax equalling 10% of the market value of the resources extracted or co-extracted within the approval area during the relevant year. However, the federal states can set different amounts for the fee and the extraction tax, so the amount of levies varies from state to state. 

Germany also imposes taxes on electricity and energy products. These are indirect taxes, so they are levied on the supplier and passed on to the consumer via the price.

There are no specific tax incentives for mining projects. However, mining companies can benefit from various tax relief options under energy and electricity tax law, as can manufacturing companies. The European Commission has also launched the Clean Industrial Deal State Aid Framework (CISAF), enabling member states to grant electricity price relief until the end of 2030, from which the mining industry could also benefit. Germany plans to implement such a system.

Mining companies can also benefit from general investment incentives for the German economy. Until the end of 2027, companies can claim up to 30% degressive depreciation for investments in equipment. Mining companies can also receive a tax refund for investments in research and development. Furthermore, corporation tax will be reduced by one percentage point annually for five years, starting in 2028. However, there are no tax stabilisation agreements available in Germany.

There are no special transfer taxes for selling a mining project. Taxation depends on the individual case and on factors such as the legal form of the companies involved and whether it is an asset or share deal. In the case of an asset deal, VAT is exempt if a company or a separately managed business unit within a company is transferred in its entirety, either for consideration or free of charge, or is contributed to a company. Capital gains are subject to regular corporate tax (currently 15%) and trade tax (approximately 15%).

In the case of a share deal, trade and corporation taxes are generally payable on the capital gain. The effective tax burden on the capital gain is approximately 1.5% (5% of the capital gain is taxed at around 30%). If the seller is an individual, 60% of the capital gain is subject to income tax. Transfers of company shares are generally exempt from VAT. Furthermore, a share deal is usually also assumed to be a VAT-exempt business takeover.

However, if the acquired company owns domestic real estate, real estate transfer tax may be applicable. This tax is subject to state law and ranges from 3.5% to 6.5% of the property value. In the case of a share deal involving a corporation, real estate transfer tax is only payable if one buyer acquires 90% of the shares.

When selling entirely through foreign corporate structures, the proceeds from the sale are not subject to corporate or trade tax in Germany. Real estate transfer tax is independent of the location of the seller or buyer.

Stable political, regulatory and economic conditions attract mining and every other business activity. Germany offers a well-developed infrastructure comprising a dense network of roads and railways, as well as large ports. As a country with a long mining tradition, it has many highly skilled engineers and other professionals. As one of the strongest industrial nations and a member of the EU, Germany has a high direct demand for natural resources and good connections to the commodities market. However, while Germany’s political system remains stable, as in other Western countries, the established political parties are losing support.

There are no specific restrictions on foreign investment in the exploration or extraction of natural resources. However, such investments may be subject to the general provisions of the Foreign Trade Act and the Foreign Trade Ordinance.

When acquiring 20% of the voting rights in a company that extracts, processes or refines critical raw materials, buyers from non-EU or non-European Free Trade Association (non-EFTA) countries are subject to a reporting obligation. This obligation also applies to any further acquisitions that result in the percentage thresholds of 25%, 40%, 50% or 75% of voting rights being reached or exceeded. Within two months of the notification, the Federal Ministry for Economic Affairs and Energy may initiate an investigation and, within a further four months, prohibit the transaction. If the deadlines expire without a decision, the transaction is deemed to have been approved by the Ministry.

The Federal Ministry for Economic Affairs and Energy can generally initiate an investigation procedure when 25% or more of the voting rights are acquired, or when additional acquisitions result in the thresholds of 40%, 50% or 75% of the voting rights being reached or exceeded. There is no reporting obligation on the buyer in these cases. The Ministry has the authority to prohibit or restrict foreign investments on grounds of public security and order.

Germany generally offers a high level of protection for investments, including those in the exploration and extraction of natural resources. While Germany is not party to any bilateral agreements exclusively concerning investments in the exploration or extraction of natural resources, it has concluded over 130 bilateral investment protection agreements since 1959, some of which also protect investments in the mining sector.

Following the Treaty of Lisbon in 2009, responsibility for foreign direct investment was transferred to the EU, though existing bilateral agreements remain in force. Since then, the EU has concluded several investment protection agreements, one of the most significant of which is the Comprehensive Economic and Trade Agreement (CETA) with Canada. The EU has also signed agreements with Vietnam, Singapore, Mexico and Chile.

However, restrictions due to the jurisdiction of the European Court of Justice weaken international investment protection treaties within member states and in Germany. According to this jurisdiction, arbitration tribunals are not permitted in internal EU proceedings. Additionally, the majority of member states, including Germany, have signed an agreement that terminates all investment protection agreements between signatory member states. Like other EU member states, Germany has also terminated its membership of the Energy Charter Treaty. As a consequence, decisions over disputes – eg, with an authority over investments – are reserved for (administrative or constitutional) state courts, which typically attach less importance to economic considerations than arbitration tribunals.

Numerous financing options are available for mining projects, and can be selected according to the individual project’s requirements. The typical financing options available in Germany and internationally can be used for this purpose. These include equity financing via securities markets or private investors, as well as bank financing (including leasing and equipment financing).

Mining companies can also take advantage of public aid programmes. Mining projects can receive funding from the European Bank for Reconstruction and Development, or through various EU support and financing programmes. At the national level, mining projects can receive funding from various support programmes, such as the German government’s Raw Materials Fund. For instance, in 2025, EUR103.6 million in public funds were contributed to two lithium extraction projects in Hesse and Rhineland-Palatinate.

The German government established the Raw Materials Fund to promote projects for the extraction, processing and recycling of critical raw materials. Financing for a project ranges from EUR50 million to EUR150 million and can be provided through various means, particularly equity instruments. However, exploration risks are not covered. Funding decisions are made by the German government, supported by the public bank Kreditanstalt für Wiederaufbau (KfW).

In terms of exploration, the role of domestic securities markets in Germany is minor, as there are not many junior miners and exploration is financed through larger companies. These include companies listed on national and international stock exchanges, as well as unlisted family-owned companies and companies with national and international investors.

Mining companies operating in Germany are listed on the Frankfurt Stock Exchange and other major international stock exchanges. Many of these companies are wholly owned subsidiaries of international corporations, which are primarily listed on stock exchanges in New York, London, Sydney or Toronto. By contrast, only a few companies are listed on the Frankfurt Stock Exchange. Foreign investors and international stock exchanges play a significant role in financing mining projects in Germany.

Exploration permits or extraction approvals cannot be granted as security. No mortgages or third-party rights can be granted for these licences. However, land and mining equipment can be mortgaged or subject to retention of title as security. Real estate security in the form of land, debts or mortgages can be entered in the land register. Furthermore, licences are generally held by a limited liability company, and its shares can be pledged as security for the lender.

However, mining property – a specific type of licence issued under the Federal Mining Act – can be charged with a mortgage or easement as security. Mining property and any mortgages are registered in the land register.

The number of new mining licences granted each year has increased steadily in recent years. In 2023, 59 new licences were granted, rising to 70 in 2024 and reaching 72 in the first half of 2025. Currently, most mining in Germany involves industrial minerals such as raw kaolin, rock salt (including evaporated salt and brine) and potash. Following the decline in the importance of mining metallic resources in Germany in recent decades, there are now signs of a turnaround in this trend. Germany has significant untapped potential in terms of certain critical raw materials. Added to this are a high direct demand for these raw materials in Germany, direct access to the European market and Germany’s well-developed infrastructure. Therefore, the extraction of domestic natural resources – especially metals for the energy transition – is expected to increase in the coming years.

Energy Transition

Most renewable energy in Germany is produced by wind power. Wind turbines require large quantities of mineral resources. As renewable energies continue to expand, demand for domestic resources is expected to rise, as will their extraction.

Critical Raw Materials

Domestic exploration and extraction of the materials for the energy transition has become important. Owing to the current geopolitical situation, there is an increased awareness of the need for independence in this area from other players, both within the EU and in Germany. To this end, the EU adopted the Critical Raw Materials Act. This Regulation promotes the exploration of critical raw materials within the EU and encourages projects for their extraction. The extraction of critical raw materials can therefore be prioritised, accelerating the granting of licences. Projects may also receive financial support.

The Critical Raw Materials Act regulates the priority status of strategic projects. For the purposes of the Critical Raw Materials Act, strategic projects are initiatives that are crucial for reducing import dependency and securing the EU’s supply of critical raw materials. This status can be achieved by, for example, a mining or circular economy project. Projects with this status must be given the highest possible national status and treated accordingly in the approval procedures. To simplify the process, the coordination of approval procedures and communication between the operator and the authorities is carried out by a single national authority (the central contact point). Furthermore, the Critical Raw Materials Act sets binding timeframes for the approval of strategic projects.

The German government’s raw materials strategy also aims to increase the extraction of metallic resources for Germany’s energy transition. To this end, the German government has set up a raw materials fund to promote projects for the extraction, processing and recycling of critical raw materials. Projects in these areas may receive financial support ranging from EUR50 million to EUR150 million. The circular economy is also a key aspect of the raw materials strategy. Many important metallic raw materials are already obtained through recycling, and this will become increasingly important in the future to ensure a stable supply of raw materials.

In June 2025, Germany submitted the first exploration report under the Critical Raw Materials Act to the European Commission. This report aims to identify and evaluate information on the potential of critical and strategic raw materials in Germany, creating incentives for their development. Germany still has unexploited geological potential for critical raw materials; for example, Germany has one of the largest estimated lithium reserves worldwide. There are also significant deposits of copper and tin. Exploration efforts for these critical raw materials are currently increasing significantly.

Growing Interest in Lithium

There is a particular focus on lithium extraction. Germany’s lithium deposits are among the largest in the world, and mining these deposits is becoming increasingly important. The first lithium extraction projects are currently under way, and production is expected to increase.

Carbon Net Zero

Owing to Germany’s goal of becoming carbon-neutral by 2045, climate-neutral production is also an important issue in mining. However, mining is also essential for achieving climate targets as it provides the important raw materials needed for the energy transition.

The government directly funds the low-emission extraction of natural resources and indirectly promotes this through economic instruments such as emissions trading. Recognising that some emissions are unavoidable, Germany will increasingly promote CCS and CCU technologies in the future. As part of Germany’s net zero legislation, the Coal Exit Act is designed to end the use of coal for energy production by 2038. This will also bring an end to coal mining in Germany.

Economic Policy

In both European and German politics, the focus on the competitiveness of industry has increased in recent years. This political approach is associated with numerous relief measures for companies.

The European Commission has presented a roadmap for strengthening Europe’s competitiveness with its Competitiveness Compass. The aim is to boost the competitiveness of the European economy by:

• reducing bureaucracy;
• strengthening the single market;
• improving financing opportunities;
• developing a skilled workforce; and
• co-ordinating policy.

In this context, the EU has introduced various omnibus packages over the years, including measures to reduce reporting requirements relating to ESG and other obligations for companies under European climate legislation.

These packages will ease the burden on many companies. For example, CSDDD will come into force later as a result of the changes; it will also cover fewer companies and contain fewer due diligence obligations. The CSRD has also been simplified in terms of reporting.

In Germany, numerous measures to support the economy have been implemented or are planned. A number of investment incentives are currently being introduced. These include tax incentives for investments in equipment or research and development. Furthermore, corporation tax will be reduced by one percentage point annually for five years, starting in 2028. Energy-intensive industries are also expected to receive relief from energy costs. To this end, the introduction of an “industrial electricity price” based on the CISAF presented by the EU is planned from 2026 onwards.

Public Awareness

With mining in Germany being viewed increasingly critically in recent decades, a change can now be seen; in particular, coal mining in Germany has encountered strong public opposition, and not only due to the large amount of surface area required.

The tense geopolitical situation and high dependence on critical raw materials from a few global players has also led to a change in public perception of mining. Strengthening Germany’s independence is a key topic of public debate. The rising energy prices resulting from the war in Ukraine have particularly highlighted the importance of independence.

Innovative mining projects that engage the local population can contribute to a more positive perception of mining. Best practice examples include lithium extraction projects. As well as clean lithium extraction, these projects often generate heat from geothermal energy and feed it into the district heating network.

Environmental and Occupational Health and Safety

In Germany, high standards of environmental protection and occupational health and safety are enshrined in various pieces of legislation that must be taken into account in mining activities. During the approval process, the interests of mining projects are considered alongside those of environmental protection. In this context, the strict requirements of water law, nature conservation law and emission control law must be considered. Recultivation aspects also have to be considered at the approval stage.