As China looks to sustain its economic development following a series of setbacks, Beijing is “pivoting to the South” in search of untapped resources and opportunities.
China has established dominance in the lower tiers of essential mining commodities, which are crucial for advanced technologies. This market leadership enables China to exert significant influence over global pricing by adjusting exports of key materials or implementing restrictions on essential commodities, according to Melissa Sanderson, a board member of American Rare Earths.
In response, the United States is actively working to diversify its sources of critical minerals. The U.S. Geological Survey identifies 50 raw materials that are deemed essential based on several criteria:
- Essential to the economy: These minerals are vital for the economic and national security of the U.S.
- Supply chain vulnerability: They have supply chains susceptible to disruptions that could significantly impact the U.S. economy or national security.
- Limited domestic production: The U.S. heavily relies on foreign sources for these minerals.
- Key role in technology and industry: These materials are crucial for the manufacturing of advanced technologies, including those used in defense, energy, and electronics.
- Potential economic impact: The unavailability of these minerals could lead to severe consequences for the U.S. economy, including job losses and downturns in key industries.
Notable examples of these critical minerals include rare-earth elements, lithium, cobalt, titanium and zinc.
