Figure 1.--

The German Government in the inter-War era attempted to break out of the isolation instituted by the Allies. The Germans when the NAZIs seized power (1933), Hitler began preparations for another War. The German military was already doing this, but Hitler gave them the resources needed to significantly begin preparations. He also began to prepare Germany economically. And part of those preparations were to expand the aluminum industry with an eye on building the most modern and powerful air force in the world. The NAZIs took many lessons from World War I, but not the big one that Germany was not well situated for a long war against major powers. One of the lessons that Hitler took from World War I was that Germany had to prepare not only militarily, but economically. One U.S. Government official wrote after World War II, "There are few Americans today who will question the statement that the ability to wage a modern, large scale war is as dependent upon industrial and economic resources as it is upon military weapons. An airplane factory is more important than the plane. A sufficient stockpile of bauxite for making aluminum is as important as the stockpile of airplane spare parts. The Germans realized this as a result of their experience during World War I. And when they armed militarily for World War II, they also armed economically and industrially." [Fowler] This of course was something that the Allies were not doing. In fact the NAZI planning was not just building up their aluminum industry, but working through cartels in limiting the building stockpiles in the other major industrial nations they planned to attack. [U.S. Senate] NAZI Germany developed the largest aluminum industry in world, exceeding that of the United States. Although not announced at the time, Hitler and Göring began building the Luftwaffe almost immediately after seizing powers. And as a staff was assembled, they made it clear that Germany needed to begin any new War with a substantial aluminum industry. This thus began very early in the NAZI era (1934). The Germans began to increase annual aluminum production capacity from 40,000 t (1933) to nearly 175,000 tons (1938) Actual production was somewhat less. German alumina capacity was increased to 430,000 annually (1938). Germany acquired two additional smelters when as a result of the Anshluss the NAZIs seized Austria, adding another 38,000 t capacity (1938). This meant that when war came the Germans had an annual capacity of over 210,000 tons. This was the largest installed base of any country in the world and explains why the Germans were able to amass such a substantial air force at the start of the War. The country, however, had no bauxite resource. Germany had access to Hungarian bauxite mining. Before Hitler launched his massive rearmament program, Germany was getting about half of its bauxite from France. The French cut off that supply (1935). We notice reports of German bauxite ships stranded in Trieste when the War began, but do not yet know where the bauxite was coming from--possibly Dutch Guiana (1939).

German Foreign Policy

The German Government in the inter-War era attempted to break out of the isolation instituted by the Allies (1920s). And the Germn military conducted secret steos to evase the Versailles resruictions. The Germans when the NAZIs seized power (1933), Hitler began a much more agressive policy, although for a tinme maintained a moderate public stance. From the beginning he fully planned to launch another war, although not initially a full scale-war with Britain and France.

Military Planning

From the outset he begabn began preparations for another War. The German military was already doing this, but Hitler gave them the resources needed to significantly begin preparations with real advanced weaoponry and a renewed conscription. This led to the birth of Blitzkrieg--essenially modern combined arms warfare.

Economic Planning

Hitler also began to prepare Germany economically for war. And part of those preparations were to expand the aluminum industry with an eye on building the most modern and powerful air force in the world. The NAZIs took many lessons from World War I, but not the big one that Germany was not well situated for a long war against major powers. One of the lessons that Hitler took from World War I was that Germany had to prepare not only militarily, but economically. One U.S. Government official wrote after World War II, "There are few Americans today who will question the statement that the ability to wage a modern, large scale war is as dependent upon industrial and economic resources as it is upon military weapons. An airplane factory is more important than the plane. A sufficient stockpile of bauxite for making aluminum is as important as the stockpile of airplane spare parts. The Germans realized this as a result of their experience during World War I. And when they armed militarily for World War II, they also armed economically and industrially." [Fowler] This of course was something that the Allies were not doing. In fact the NAZI planning was not just building up their aluminum industry, but working through cartels in limiting the building stockpiles in the other major industrial nations they planned to attack. [U.S. Senate]

Aluminum processing

Hitler also began to prepare Germany economically for war. And part of those preparations were to expand the aluminum industry with an eye on building the most modern and powerful air force in the world. The NAZIs took many lessons from World War I, but not the big one that Germany was not well situated for a long war against major powers. One of the lessons that Hitler took from World War I was that Germany had to prepare not only militarily, but economically. One U.S. Government official wrote after World War II, "There are few Americans today who will question the statement that the ability to wage a modern, large scale war is as dependent upon industrial and economic resources as it is upon military weapons. An airplane factory is more important than the plane. A sufficient stockpile of bauxite for making aluminum is as important as the stockpile of airplane spare parts. The Germans realized this as a result of their experience during World War I. And when they armed militarily for World War II, they also armed economically and industrially." [Fowler]

Stockpiling

Building stockpioles of course was something that the Allies were not doing. The Allies had no intentuion of going to war. Rather the policy od Allied goverments was to prevent war, virtuslly at any cost--hence the popularity of pacifism/isolationism and the policy of Appeasement. Thus there was no needed for a stratehic reserve and stockpiles. And aluminum comanies were gverned by market ynamics, not national defense needs. NAZI planning, in sharp contrast, was not just building up their aluminum industry, but working through cartels in limiting the building stockpiles in the other major industrial nations they planned to attack. [U.S. Senate] German and American and French companiess formed cartel to manipulare prices. This included both finisdhed product and bauxite prices. Germann priorituies were a little different than the other cartel menbers. Which means it was not just coporate officers setting the priorities, but Reich officials behind the scenes were setting the oprioruities. We are not sure just who was involved. This seems too sophisticated for Göring, but not perhaps for his advisors. The goal was to limit American, British, and French stockpiling and production. The Germans purchased bauxite and alumina from French miners at higher prices than French aluminum producers offered. The result was that when Hitler and Stralin launched the War, America, Britain, and France had very linmited supplies of amonia as well as bauxite and alumina. (A similar situatiion trasppred for magnesium.) The U.S. Senate report concluded "When World War II started, France paid dearly for this arrangement. And when, not long after, the United States was attacked at Pearl Harbor, it found itself with far less aluminum production than it needed. The British went through a similar experience." [U.S. Senate]

Cartels and corporate alliances

Major corporations involved in the aluninum and smaller, but related magnesium industry in the inter-war era were involved in a range of efforts to control the market, nuch as OPEC operated in recent years. The two most imprtant companies were IG Farben in Germany and Alcoa in the United States. IG Farnen worked closely with the NAZI Government. Alcoa seems to have been primarily directed by coporate intetests. They seemed to have been largely unaware of the degree that IF Farbern was being directed by the NAZIs Government and Hitler's actual charaacter and plans. Of course Alcoa would ultimately become a vital cog in the American Arsenal of Democracy. Today there are many laws governing coroporate behcvior. At the time the American legal structure was much more limited, dealing primarily with outright theft.

Aluminum Industry

NAZI Germany developed the largest aluminum industry in world, exceeding that of the United States with its growing commercial airline kindustry. Although not announced at the time, Hitler and Göring began building the Luftwaffe almost immediately after seizing powers. And as a staff was assembled, they made it clear that Germany needed to begin any new War with a substantial aluminum industry. This thus began very early in the NAZI era (1934). The Germans began to increase annual aluminum production capacity from 40,000 t (1933) to nearly 175,000 tons (1938) Actual production was somewhat less. German alumina capacity was increased to 430,000 annually (1938). Germany acquired two additional smelters when as a result of the Anshluss the NAZIs seized Austria, adding another 38,000 t capacity (1938). This meant that when war came the Germans had an annual capacity of over 210,000 tons. This was the largest installed base of any country in the world and explains why the Germans were able to amass such a substantial air force at the start of the War.

Companies

Several companies were involved in the German light-metal industry. Vereinigte Aluminum Werke AG (VAW) was the major German aluminum company. VAW produced about 70 percent of Germany's aluminum in 1943 and over 75 percent of production in Greater Germany. The company was founded during World War I with government financing, part of the war-time effort to expand aluminum production. VAW invested in aluminum and alumina plants in Austria, Hungary, and Yugoslavia. IG farben was a huge chemical comopamy, but by 1939 had a substantial light metal (Aluminum and Magnesium) production had become an imprtant part of the company's business. It owned a half interest in Aluminiumwerk GmbH that operated aluminum smelters at Aken and Bitterfeld. IG Farben purchased the alumina raw material from Aluminium Industrie Aktiengesellschaft in Switzerlans but also operated aluminum fabrication plants. By the end of World War II, IG Farben was producing almost all of the Germany's magnesium sheet and magnesium die casts. Another German company, Metallgesellschaft, owned 50 percent of the Aken and Bitterfeld smelters. It also was responsible for the aluminum sales from the for the Aken and Bitterfeld smelters along with aluminum from government-owned company VAW.

Raw material: Bauxite and alumnjia

Germany had no bauxite or alunia resource. Germany had access to Hungarian bauxite mining. Before Hitler launched his massive rearmament program, Germany was getting about half of its bauxite from France. The French cut off that supply (1935). We notice reports of German bauxite ships stranded in Trieste when the War began, but do not yet know where the bauxite was coming from--possibly Dutch Guiana (1939).

Energy

Sources

Fowler, Henry H. Fowler was director of the Enemy Branch of the Foreign Economic Administration. He destified before the Senate Subcommitte of the Committee on Military Afairs. The Subcommittee issued its report on "The Elimination of German Resources for War" (June 22, 1945).

U.S. Senate. Subcommitte of the Committee on Military Afairs. "The Elimination of German Resources for War" (GPO: June 22, 1945).

"Germany's aluminium industry," Nature Vol. 46, (November 30, 1940), p. 713.

Created: 1:42 PM 12/15/2022
Last updated: 1:42 PM 12/15/2022