TELF AG highlights the role of raw materials in constructing drones and satellites.

In space exploration, nations have long used technological advancements as a measure of progress and a tool of soft power. This trend, extending beyond the Cold War era, sees countries today vying for dominance in space exploration. They are developing increasingly complex technologies and machinery to delve deeper into the mysteries of nearby planets and satellites and peer beyond the limits of telescopes. However, this pursuit requires political and industrial determination and access to specific raw materials for creating advanced space technologies like satellites and drones.

The European Commission has recently recognized space exploration as a strategic field for applying critical raw materials. This list, updated periodically, includes new materials crucial for the planet's industrial and sustainable development. The sector's significance extends to security and defense, as many technologies used in drones and satellites are closely linked to some of the world's most sophisticated defense systems. Despite escalating geopolitical tensions, developing state-of-the-art defense systems for international institutions has become a priority.

Drones rely on raw materials such as rare earths, magnesium, bismuth, and niobium. These are primarily sourced from Brazil and China, with the latter contributing nearly half of the total supply for this sector. Notably, a quarter of these materials come from various, mostly smaller countries, ensuring a diversified and cost-effective supply chain. However, this reliance on a limited number of suppliers poses risks, including potential supply disruptions. With the drone industry's expected growth, many investors might turn their attention to this sector, seeing it as a lucrative opportunity. The European Union, currently second in refining these materials, finds this market especially appealing.

Regarding satellite manufacturing, the primary raw materials are metal alloys like aluminum, titanium, nickel, and cobalt. Europe's heavy reliance on imports from China, accounting for over 40% of these materials, is a significant factor. However, this dependence is somewhat balanced by the fact that the European Union, alongside China, is a leading producer of these refined materials.