Tensions between the United States and China are escalating over a critical minerals export ban imposed by China on the US. In early December, the US announced export restrictions on China’s ability to develop artificial intelligence, prompting China to retaliate by banning the trade of gallium, germanium, and antimony.
These three minerals, known as critical minerals, are essential for various technologies including semiconductors, electric vehicles, and solar panels. According to a recent US Geological Survey report, China is the leading producer of 29 out of 50 listed critical minerals and accounts for 50% to 80% of the US’s supply.
Dexter Roberts, a think tank expert on China-US relations, says China is using this move as leverage to control the market. “China has a long history of using its economy, markets, and resources as political leverage,” he stated.
The US response to China’s embargo has been swift, with President Xi Jinping warning that allowing the US to access these critical minerals poses a natural security risk for his country. Experts predict that this move could lead to further retaliation from both sides.
However, some companies are taking steps to mitigate this risk by exploring alternative sources of critical minerals. For example, US Critical Materials has announced a successful completion of Phase One of its research agreement with Idaho National Laboratory to develop a proprietary separation process for rare earth elements.
Another company, Bolt Metals Corp., has discovered copper and other critical mineral deposits in Montana, which could potentially provide a new source of supply. According to Director John Metesh of the Montana Bureau of Mines and Geology, mining companies must invest at least 10 years to recover from global politics and environmental regulations.
The future of US-China relations remains uncertain, but experts agree that further cooperation is necessary to avoid devastating economic consequences.
Source: https://nbcmontana.com/news/local/us-could-look-to-montana-after-chinas-critical-minerals-embargo