Amid China’s export curbs, Germany’s offshore wind industry is seemingly turning to India to secure supply chains critical to Europe’s energy transition, with a focus on rare-earth magnet sourcing.
German offshore wind companies are exploring India as a potential source of rare-earth magnets amid growing concerns about China’s dominance of global supply chains, according to a Mint report.
The interest stems from tighter export controls imposed by China, which currently controls around 90% of the world’s rare-earth magnet processing capacity. These magnets are a vital component in offshore wind turbines and other critical manufacturing, including electronics, making Europe heavily dependent on a single supplier.
The report mentioned that discussions are at an early stage. The issue was raised last month during a visit to India by a German delegation led by Johann Saathoff, parliamentary state secretary at Germany’s federal ministry for economic cooperation and development. Talks with Indian officials focused on potential collaboration on manufacturing rare-earth magnets.
Germany’s offshore wind sector is seeking to reduce geopolitical risk and supply chain vulnerability. India has emerged as a potential alternative due to its large rare-earth reserves and efforts to build domestic magnet manufacturing capacity.
Industry estimates suggest India could eventually produce more magnets than its own domestic needs.
The report further mentioned that German wind energy companies are keen to understand whether India can meet future demand. Moreover, the German Offshore Wind Energy Foundation is considering to sponsor a study to assess collaboration opportunities and India’s ability to supply permanent magnets to the sector.
For now, engagement remains largely at a government-to-government level, with industry bodies involved in preliminary discussions. No formal commercial agreements have been announced.
Germany is among the world’s largest offshore wind markets. Installed offshore wind capacity stood at 9.2GW at the end of 2024. The country plans to expand this to 30GW by 2030 and 40GW by 2035, sharply increasing demand for rare-earth magnets.
Major players in Germany’s offshore wind industry include Deutsche Windtechnik, Global Tech Offshore Wind GmbH and WINDEA Offshore.
