Germany Explored Peru Lithium for Car Supply Chains
A German delegation visited Lima to evaluate potential investments in the Falchani lithium project.
Updated on Oct. 2, 2026 in Auto Parts
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German officials and a business group recently visited Peru to assess potential partnerships for securing lithium supplies. This initiative aims to reduce German reliance on specific nations for the minerals essential to electric vehicle battery production.
Why it matters
Securing stable mineral sources is a strategic priority for German automakers as they work to decentralize their EV supply chains. By engaging with Peruvian projects, Germany seeks to diversify its raw material access beyond current concentrated markets.
The Falchani project in Puno is estimated to require US$834 million in investment. A delegation of 17 German companies participated in the recent Lima visit to discuss these opportunities.
The players
Stefan Rouenhoff
He is a government official who led the German business delegation during the visit to Peru.
Macusani Yellowcake
This is the company that owns the Falchani lithium project located in the Puno region of Peru.
Fraport AG
This is a German transport company that holds an 80% stake in Lima Airport Partners.
The details
German officials are considering direct investments or long-term purchase contracts to support the Falchani lithium project, which is currently owned by Macusani Yellowcake. Germany is offering specialized technology for exploration and sensor-assisted extraction to assist in the development of these Peruvian deposits.
Timeline
Germany and Peru signed a raw-materials agreement in 2014.
Stefan Rouenhoff visited Lima with a business delegation on September 29-30, 2026.
A senior German foreign ministry official will visit Lima at the end of November 2026.
Peruvian companies will present the country to investors in Frankfurt in February 2027.
The Falchani lithium project is scheduled for a start in the second half of 2028.
Roadmap
This move represents a strategic push by the German automotive sector to secure a reliable, diversified supply chain for critical battery minerals. It follows a pattern established by the 2014 Germany-Peru raw-materials agreement that seeks to integrate international mining output into domestic industrial production.
The stabilization of lithium supply chains through these investments could eventually help regulate battery costs for electric vehicles. Car buyers may see these efforts reflect in the long-term pricing and availability of new electric models produced by German brands.
The takeaway
The German government is leveraging its technical expertise to gain a foothold in South American lithium extraction. This shift highlights the urgent need for automotive manufacturers to lock in long-term raw material access before the next generation of EV production begins in 2028.
What happens next
A senior German foreign ministry official is scheduled to visit Lima at the end of November 2026, followed by an InPerú investor roadshow in Frankfurt in February 2027.
Further reading
Learn more about how global supply chain shifts are impacting Auto Parts.
Source note: This article includes information reported by The Rio Times.
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