Inside Germany's rare earth warehouse

In a World War II bunker east of Frankfurt, a steel door weighing over four tonnes protects Germany's largest reserve of rare earths, a treasure at the heart of rising geopolitical tensions.

- JEAN-PHILIPPE LACOUR

Matthias Rueth, president of Tradium, inside the company's storage room, in Frankfurt, Germany, last Tuesday.

(AFP)

The exact location is confidential, and the site is under close video surveillance.

This is where Tradium, a German company specialised in trading rare earths, keeps thousands of barrels of the precious materials almost all from China, the world's biggest producer.

The materials in the bunker such as dysprosium, terbium and neodymium are essential for the manufacture of crucial modern technology including smartphones, electric cars and wind turbines.

Tradium, which employs fewer than 40 people, expects to reach a turnover of €300 million ($346 million) this year.

In the midst of the US-China trade war, Beijing imposed restrictions in April on rare earth exports, making them subject to licenses with stringent conditions.

China controls over 60% of rare earths mining and 92% of refined production worldwide, according to the International Energy Agency.

Germany's flagship automotive sector is especially affected by the restrictions because it is dependent on rare earth magnets.

China's dominance in the sector has left European industry highly exposed.