Search Results

Voters of Taiwan have spoken, and have elected the current vice president, Lai Ching-te, the presidential candidate whom China most distrusts according to the Wall Street Journal, as their new president.  As Chun Han Wong writes for the Journal, his election “puts at risk a fragile détente between Washington and Beijing, threatening another flare-up between the world’s biggest economic and military powers.”

ARPN has been keeping a keen eye on U.S.-China relations, but if you needed a visual reminder on why it matters beyond economic and military might, Visual Capitalist is here to help and has released another great chart depicting China’s dominance of critical mineral supply chains.

Using USGS data, the expert chart makers have visualized China’s share of U.S. imports for ten critical minerals:

Sometimes a picture says more than a thousand words, but if you need more context, Visual Capitalist also provides some additional context here, and points to USGS estimates that if China were to cut off 40-50% of rare earth oxide production, it could disrupt global supply to the point where it would impact U.S. defense systems advanced component suppliers.

Followers of ARPN are aware of the increasing weaponization of trade in the context of U.S.-Chinese relations, and in particular the role of export controls, such as the ones imposed by China on germanium and gallium, as well as graphite and rare earths.

As such, it comes as no surprise that U.S. policy stakeholders are taking a firmer stance on policies relating to China, particularly in an election year. See our post on the U.S. House vote to overturn the waiver of “Buy America” requirements for taxpayer-funded EV charging stations here. 

However, these waiver requirements are just the tip of the proverbial iceberg.  Mandates to source domestically or from allies can only work if there is a framework conducive to harnessing these resources, so this election cycle and beyond candidates and other stakeholders should prioritize strengthening domestic critical mineral supply chains where possible, and friend shoring, where necessary.

As geopolitical flashpoints continue to increase, so do the stakes.

Happy New Year! They may say “Out with the Old, in with the New,” but if the waning days of 2023 are any indication of what is to come in 2024, we’ll likely continue down the path we’ve been on for the past twelve months, at least when it comes to the Tech Wars.

Somewhat lost in the shuffle of work parties, family gatherings and holiday shopping was the Chinese government’s announcement on December 21 that it would ban the export of technology to make rare earth magnets, adding to a ban already in place on extraction and separation technologies for REEs.

In what Reuters calls an “escalating battle with the West over control of critical minerals,” Beijing significantly tightened rules guiding exports of several metals in 2023. (see ARPN’s reprise post of 2023’s main events in the critical minerals realm for more on China’s tightening of the export control ratchet).

Don Swartz, CEO of American Rare Earths, a company currently developing a REE mine and processing facility in Wyoming, sees China’s move, which follows a November 2023 directive from the Chinese government to REE exporters to report transaction details, as a clear sign that “China is driven to maintain its market dominance,” with Swartz adding that “[t]his is now a race.”

Meanwhile, for all the tit for tat in the grander scheme of the Tech Wars and a flurry of activity on the resource policy front, the West has struggled to effectively decouple its critical mineral supply chains from China.

In the case of rare earths, China, which still accounts for nearly 90% of global refined output, controls the refinement process, and area that has Western REE companies struggling because of “technical complexities and pollution concerns” in the solvent extraction process, as Reuters points out.

Nonetheless, experts believe the latest announcement should be “a clarion call that dependence on China in any part of the value chain is not sustainable.” 

The West may have kicked off the new year already, but Chinese New Year is still upon us. 2023, the Lunar Year of the Rabbit, was supposed to bring us “relaxation, fluidity, quietness and contemplation.”  What we got, was an escalation of the Tech Wars, more resource nationalism and more geopolitical instability.  At the same time, these developments also served as catalysts kicking efforts to strengthen domestic supply chains into high gear.

With 2024 moving us into the Lunar Year of the Dragon, the overall energy of which is said to be “vital and competitive,” we may be in for a tumultuous ride.

Read ARPN’s Year in Review – A Look at 2023 Through the Prism of Critical Mineral Resource Policy here. 

 

– A Look at 2023 Through the Prism of Critical Mineral Resource Policy -  In the waning days of December 2022, ARPN and others were gearing up for a watershed year in the critical minerals realm – a year which could be a “breaking point if there is to be an EV revolution/transformation,” and one that would [...]

While the recent meeting between U.S. President Joe Biden and his Chinese counterpart Xi Jinping on the sidelines of the APEC summit in San Francisco last month was seen by some as a step towards alleviating tension between the two global powers, U.S. Secretary of Commerce Gina Raimondo’s latest speech and subsequent comments at the Reagan [...]

 With hot wars raging in Central Europe and the Middle East, do we have bandwidth to focus on a war that’s metaphorical – for now, at least:  The Tech War pitting China versus the U.S.? Against the backdrop of China’s recently announced restrictions on graphite exports (see ARPN’s coverage here) set to take effect on Friday, [...]

It’s visualization time. And while your Thanksgiving-focused brain may trick you into believing the infographic you see here represents the proportions of turkey to sides, Visual Capitalist has put together an important reminder for those working in the realm of mineral resource policy, and quite frankly, everyone else. Using USGS data, the infographic (click here for a full-size look [...]

As China tightens its export control ratchet yet again this week (see our latest post), here comes another visual reminder of why Beijing’s actions are relevant and concerning: Our friends at Benchmark Mineral Intelligence have put together a new infographic illustrating China’s critical mineral supply dominance specifically for graphite anodes. Before Beijing unleashed its latest salvo of [...]

Only weeks before a planned November summit between Chinese President Xi Jinping and his U.S. counterpart, U.S. President Joe Biden, China’s commerce department has announced a new set of critical mineral export restrictions against what Nikkei Asia refers to as “a backdrop of domestic calls for a response to stricter limits on U.S. semiconductor exports to China.” According [...]

Trade policy in an integrated global economy can take some unexpected twists and turns.  Today’s post highlights returns to one development under discussion that could lead to a result diametrically opposed to the original intent, in this case, of the U.S. Congress and Biden Administration. Earlier this month, in a letter to Biden Administration officials, U.S. [...]

In keeping with its known penchant for weaponizing trade, Beijing is tightening its export control ratchet again this week. Now in the Tech War crosshairs:  Graphite. According to Reuters, China announced today that to protect national security, it will require export permits for certain graphite products – a move analysts see as a play “to control supplies of critical [...]