Critical Minerals Race Gathers Momentum

China's dominance in critical minerals for clean technologies is posing challenges for the US and Europe, prompting strategic initiatives to secure alternative supplies and reduce dependence.

Author

Future Money
November 21, 2023

Five Second Summary

China's dominance in critical minerals for clean technologies is posing challenges for the US and Europe, prompting strategic initiatives to secure alternative supplies and reduce dependence.

The chart

The Countries

  • China

  • US

  • European Union

What's Happening

  • China's Dominance: China leads in "critical minerals," essential for clean technologies like electric vehicles and renewable energy.

  • Challenges for the US and Europe: The US and Europe are lagging behind China in critical mineral production, risking supply chain vulnerabilities.

  • Strategic Initiatives: The US and EU are implementing measures to secure alternative supplies and reduce dependence on Chinese sources.

Numbers + Facts

  • About 50 Elements: The critical minerals include about 50 metallic elements and minerals crucial for industrial and military capabilities.

  • China's Dominance: China is the leading producer of 20 critical raw materials globally.

  • Export Controls: China imposed restrictions on gallium, germanium, and graphite exports, impacting global supply chains.

Looking Ahead

  • Strategic Legislation: The US and EU have enacted strategic legislation (e.g., President Biden’s Inflation Reduction Act, EU’s Critical Raw Materials Act) to address supply chain vulnerabilities.

  • Shift Towards Domestic Sources: Initiatives aim to promote domestic production and reduce reliance on Chinese supplies.

  • Global Partnerships: Both the US and EU are seeking partnerships with other nations to diversify supply chains and enhance resilience against disruptions.