No raw materials - no tanks
The meetings in “Ramstein” Format conceived to resolve the issues of arms supplies to Ukraine, determined the main vector of direction of the Western countries within the framework of military aid, which is to increase the production of weapons and military equipment. However, the countries participating in this format may face a significant problem - a shortage of raw materials needed to construct, maintain and modernise combat vehicles.
Ramstein results
During the meeting of Western countries at the Ramstein Airbase on 20 January 2023, NATO Secretary General Jens Stoltenberg said that the member countries of the alliance needed
to increase the production of equipment, weapons and ammunition to replenish their supplies.
In February 2023, he noted the importance of signing new contracts with military industry companies to achieve increase in arms production.
In late January 2023, German Chancellor Olaf Scholz agreed to transfer Leopard 2 tanks to Ukraine, but at the same time the EU’s Defence Joint Procurement Task Force determined that anti-tank systems and missiles, soldier equipment and radios, ammunition, explosives, mortars and multiple rocket launchers (MLRS), rockets, air defence equipment, man-portable air defence systems (MANPADS), bombs, small arms were required to meet both European and Ukrainian demand.
The UK Ministry of Defence sent at least 14 Challenger 2 tanks, more than 8 AS-90 artillery systems, hundreds of armoured transporters and missile systems, as well as ammunition to Ukraine. The Challenger 2 tanks themselves consist of “Chobham” composite armour created from “steel-ceramic-steel” layers, which can be produced using boron carbide, silicon carbide, aluminium oxide, aluminium nitride, titanium borides, synthetic diamond compositions and titanium alloys.
The company comprises subsidiaries: BAE Systems AB (Sweden), Rheinmaetall BAE Systems Land (a joint venture with Germany's Rheinmetall), around 70 branches in the UK, over 100 in North America and 23 in Australia.
In addition to the production of CV series tanks (jointly with Swedish BAE Systems AB), Typhoon aircraft, Astute class submarines and other military equipment the corporation pays special attention to the production of microelectronics in all areas.
French enterprise Nexter, which is part of KNDS joint venture with German concern Krauss-Maffei Wegmann, produces such military equipment as AMX-10RC tanks and CAESAR self-propelled howitzers, which will also be shipped to Ukraine.
The company itself has 9 branches in France, 2 in Italy and one in Belgium. The concern is engaged in production of artillery systems, new LECLERC tanks, armoured personnel carriers and BMPs, as well as ammunition for them. In addition, this concern produces unmanned ground vehicle (UGV), as well as military electronics, microelectronics and displays.
In Germany, combat vehicles are produced by the military-industrial concerns Rheinmetall and Krauss-Maffei Wegmann.
According to the website of the German Federal Government, more than € 2 billion have been allocated as part of military aid to Ukraine. In addition to military equipment and spare parts, 34 Gepard SPAAGs, 122 border patrol vehicles, 26 unmanned surveillance and reconnaissance aerial vehicles, 5 MARS II SPLLs were sent there. According to the same data, 18 Leopard 2A6 tanks, 3 Gepard SPAAGs, 40 Marder IFVs, 5 Mobile Recon Systems and other military equipment are planned to be delivered.
Krauss-Maffei Wegmann is part of the KNDS joint venture with the French concern Nexter and produces artillery, APCs, AAWS and, in particular, Leopard 1 and Leopard 2 tanks.
Leopard 2 tanks are equipped with armour originally similar to the “Chobham”, meaning it can use various chemical compounds, titanium alloys, and reinforced rubber.
Rheinmetall, for its part, is a manufacturer of smoothbore guns and additional armament for Leopard 2 series tanks, as well as tanks, AAWS, IFVs and APCs, but with a special focus on C4I smart systems.
Rheinmetall has branches and subsidiaries in the USA, Hungary, UK, Netherlands, Czech Republic, Poland, Italy, France, Norway and other countries, and touches the fields of large military equipment, ammunition, electronics solutions and materials trading.
Metals and gases
The production of military-required microelectronics such as microchips and semiconductors require certain metals as well as inert gases that are critical to their constructing and processing. Rare earth elements (REE) have unique electromagnetic and chemical properties, as well as excellent resistance to corrosion and abrasion. At the same time, such materials are lightweight but strong, making them indispensable for military purposes.
For about half of them, the EU is 100 % dependent on imports from non-EU countries. Russia is the EU's main trading partner for many of these raw materials, ranking among the top 15 exporters. Most Russian metal shipments go to the Baltic States, Germany (about 8.8 %), then Italy, Finland, Poland and Belgium.
Europe also recognises its critical dependence on aluminium and natural graphite. These are used in the production of aeroplanes, attack and multi-role helicopters, naval warships, tanks, artillery and missiles.
While the West repeatedly imposes sanctions on a wide range of Russian institutions, it ignores the industrial metals sector. For example, the largest aluminium producer Rusal, which accounts about 6% of global production.
During first decade of 2022, the EU continued to hold the position of the largest importer of untreated aluminium from Russia, buying an average of 78,000 tonnes per month, which is 13% more than the same period in 2021.
Rare earth elements
Dysprosium, platinum, praseodymium, silicon metal and terbium are used in Europe to produce components for military equipment. These materials are used in military aviation, for example in the construction of rockets, engines or electronic systems of aircraft. Dysprosium, terbium and praseodymium are rare earth elements, of which China has a practical monopoly (86 %) on mining and production.
Other rare earth elements, yttrium, germanium, neodymium and tantalum, are used for on-board electronics in ground-based military equipment. China produces 86 % of yttrium, neodymium, and 76 % of germanium. In the first nine months of last year, their shipments to the EU totalled 36,000 tonnes, twice as much as in 2021. Russia ranks the 2nd place in the world in explored reserves of REE (28 million tonnes) ceding leadership to China. Tantalum is mined mainly in Rwanda (46%), Congo (19%) and Brazil (15%).
Nickel, iron and steel, as well as chromium and vanadium, are present in wear-resistant and heat-resistant alloys for gun barrels, as they help to extend their service and improve performance. Russia is the most important supplier of these metals, providing up to 86 % of vanadium, 53 % of iron and steel, 36 % of nickel and 15 % of chromium in EU imports.
Inert gases
Helium is used in the production of fibre-optic cables and semiconductors. It is used in the nuclear power, aeronautics, space and defence industries: for sealing rocket fuel tanks and for cutting and welding metals.
Currently, the largest suppliers of helium are the USA (43%) and Qatar (32%). However, Russia has about 25% of the world's helium reserves. About 32 helium-containing gas fields have been discovered in Eastern Siberia. The Chayanda oil and gas condensate field and the Kovykta gas condensate field are one of the largest in Eastern Siberia.
Russia and Ukraine were major suppliers of neon, krypton, xenon and argon, which are used to make high-tech semiconductors. The Ukrainian companies Ingaz and Kryon provided 70 % of the world's neon consumption. After the start of a special military operation, the companies located in Mariupol and Odessa were forced to cease operations. In response to the US ban on semiconductor exports to Russia, Moscow suspended exports of inert gases.
Meanwhile, in January 2023, the German company Linde announced the launch of a new complex for the production and filling of krypton and xenon. It has been announced that Germany launches its own krypton-xenon production facility, which might help to mitigate negative effects of EU supply disruption, approximately half EU rare gases imports having been attributed to Russia and Ukraine.
In Russia, on the other hand, NLMK is engaged in the production of heavy inert gases. For example, in 2018, NLMK Group entered into an agreement for the long-term supply of argon, oxygen and nitrogen from The Linde Group, and in 2020 it interacted with Air Liquide company on the sale of a production site for krypton-xenon and neon-helium mixtures. Both foreign companies have announced the suspension of operations in Russia.
Considering that inert gases are needed for the production and modernisation of NATO military equipment, the decision to ban their export from Russia can be called relevant. It is likely that such an embargo may also affect rare earth elements. It is not excluded that in the current situation, trade flows will be directed to a greater extent to meet the demand of the domestic market, as well as the markets of friendly countries. In the event of an acute shortage of materials, European countries and military-industrial concerns will be forced either to find new ways of favourable imports or to make compromises.
