Germany's circular economy lead faces rising pressure from East Asia
Germany remains a global frontrunner in circular economy technologies, particularly in battery recycling and sustainable construction. The country holds the second-highest number of patents in this field and leads in their economic impact. However, its position faces growing pressure from East Asian competitors like China, South Korea, and Japan.
Between 2010 and 2024, Germany filed around 10,700 circular economy patentsânearly a fifth of the 62,000 submitted worldwide. While its filings grew from roughly 200 in 2010 to over 1,200 by 2024, this increase was the slowest among leading nations. China, in contrast, filed nearly five times more patents in 2021 than in 2010, with South Korea and Japan tripling and doubling their numbers, respectively.
Germany's patents stand out for their quality, cited nearly 15,000 times in later applications over the past 15 years. The country dominates in circular construction, boasting the largest market share and a broad network of patent holders. Battery recycling is another key strength, with Germany securing an expanding share of global patents in this area.
Supporting policies have played a crucial role. Measures like the Circular Economy Action Plan, the Extended Producer Responsibility Act, and the National Circular Economy Strategyâalong with R&D funding through initiatives such as the BMBF's 'Circular Economy' programmeâhave driven progress. These technologies could help Germany reduce reliance on global supply chains by reusing valuable raw materials.
To stay ahead, Germany must strengthen its legal and financial frameworks to foster further innovation. Battery recycling and circular construction remain vital for the economy's future. Without sustained investment and policy support, the country risks losing ground to faster-growing competitors in East Asia.
