China’s new export controls on gallium, germanium, and antimony could significantly impact the growing US clean energy sector and defense industry. The three metals are crucial for producing semiconductors, solar cells, and other high-tech components.
The US has responded with its own export curbs targeting China’s ability to make advanced computer chips. Analysts warn that Beijing’s moves could drive up costs and create uncertainty for companies planning their supply chains.
Gallium-based semiconductors are used in radio frequency electronics, LEDs, and high-efficiency solar cells. The US has invested billions of dollars in building its domestic EV supply chain through subsidies like the Inflation Reduction Act. However, China’s export curbs may affect this effort.
Beijing has also restricted exports of graphite, a key material for electric vehicles. The US defense industry relies on these materials for advanced technologies and may be affected by the new controls.
Analysts acknowledge that it will take time to assess the impact of China’s curbs, but any immediate effects should be limited. However, some see Beijing’s moves as symbolic, with ramifications depending on how China enforces the new rules.
China is a major producer of these metals, and its export restrictions may limit US access to them. Companies may find it challenging to process and produce products based on these minerals outside China due to costs and regulatory challenges.
The US Geological Survey estimates that if China’s net exports of gallium and germanium were completely restricted, US GDP could decrease by $3.4 billion. The industry will need to navigate these complexities to mitigate the effects of China’s export curbs.
Source: https://www.yahoo.com/news/us-clean-energy-defense-impacted-030937533.html