China has banned select critical minerals exports to the US as a retaliatory measure against the US’ new microchip export restrictions.
Critical minerals are used to produce myriad technological devices in sectors like energy, defense, digital technology, and healthcare.
Critical minerals are extracted throughout the world but must be processed in specific facilities in order to be used in manufactured goods.
China is currently the world’s largest producer of processed critical minerals, processing nearly all of the available processed critical mineral stock.
According to MIT Technology Review, China specifically banned gallium, germanium, antimony, and so called “superhard materials” used heavily in manufacturing from being exported to the US.
The bans have raised debate amongst lawmakers as critical minerals are essential for the US’ economic security as well as the energy and defense sectors.
“Change is coming,” assured National Security Advisor-nominee Mike Waltz when responding to Senator Dan Sullivan’s (R-AK) concerns that the US had to find alternate routes to secure critical minerals, possibly by mining for these minerals within America’s borders.
Before China’s ban, lawmakers had been pushing for the US government to incite US companies to pivot away from China as their main critical minerals provider.
Last July, Senators Marco Rubio (R-FL), Mark Warner (D-VA), and colleagues introduced the Global Strategy for Securing Critical Minerals Act of 2024 to combat China’s dominance in the field.
If passed, the Global Strategy for Securing Critical Minerals Act of 2024 will allegedly combat China’s dominance in the field as well as ensure the U.S. with secure end-to-end supplies of critical minerals.
“The U.S. must have a comprehensive response to China’s dominion over the global critical mineral industry,” said Rubio. “With our consensus package, Senator Warner and I hope to free our nation’s supply chains from China’s industrial monopoly.”
Among other measures, the act would streamline diplomatic efforts for securing critical minerals, enhance US public financing tools for mineral procurement, and create an investment fund for critical mineral metallurgical facilities.
