China Controls Minerals That Run the World—and It Just Fired a Warning Shot at U.S.

in news •  last year 

"SINGAPORE—China’s decision this week to restrict the export of two minerals used in semiconductors, solar panels and missile systems was more than a trade salvo. It was a reminder of its dominant hold over the world’s mineral resources—and a warning of its willingness to use them in its escalating rivalry with the U.S.

Around two-thirds of the world’s lithium and cobalt—essential for electric cars—is processed in China. The country is the source of nearly 60% of aluminum, also used in EV batteries, and 80% of polysilicon, an ingredient in solar panels. It has an even tighter grip on rare-earth minerals that go into crucial technologies, like making smartphone touch screens and missile-defense systems, accounting for 90% of their refining, according to the International Energy Agency."

"China’s hold over the world’s minerals gives it the power to potentially disrupt the West’s energy transition, chip manufacturing and defense industries as its great-power rivalry with the U.S. heats up. A Chinese move to restrict exports of, say, lithium or cobalt would hit non-Chinese automakers hard, throwing the production of electric-car batteries into disarray.

Such extreme measures are unlikely in the near term, not least because they would also hurt Chinese businesses, but experts say they aren’t off the table."
https://www.wsj.com/articles/china-controls-minerals-that-run-the-worldand-just-fired-a-warning-shot-at-u-s-5961d77b

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