Rare Minerals, Rare Foresight: Can the U.S. Unravel Supply Chain Dominance?
Are global ambitions for clean energy built on a fragile dependency on China?
China’s recent ban on exporting gallium and germanium to the U.S. has exposed the vulnerabilities of global supply chains, particularly for semiconductors and clean energy technologies.
These materials, essential for batteries and military applications, are a reminder of China’s dominance in processing and refining key resources. For instance, while China holds only 8% of global lithium reserves, it processes 58% of the world's supply, underscoring its pivotal role in the battery supply chain.
- Strategic bans: Restrictions may expand to include graphite.
- Market disruption: Lithium prices dropped 80% from Chinese oversupply.
- Future implications: EVs and power grids heavily depend on batteries.
This tension highlights the risks of concentrated resource control. Diversifying supply chains could mitigate such dependencies, but is the world ready to invest in alternate sources?
Read the full article on MIT Technology Review.
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