Lithium and other elements that the U.S. needs for vital defense, energy, and other applications could become harder to obtain if the Trump administration goes ahead with tariffs and other protectionist policies aimed at China.
China refines more than 90% of the global supply of so-called “rare earth elements,” which include neodymium and dysprosium. Not actually rare, these 17 elements are difficult to mine and refine because they’re not often found in concentrated deposits. Some elements, like lithium, are usually mentioned along with rare earth elements, because they are also critical for the tech sector.
Without them, cellphones wouldn’t vibrate and computer hard drives wouldn’t operate. They’re used in wind turbines, electric cars, and other industries the U.S. has sought to develop.
The U.S. imports more than 80% of its rare earth elements, with most of those imports coming from China. A trade war impacts cellphone and other tech companies making their products in China when they have to ship those products to the U.S. and pay an import tariff.
President Donald Trump imposed 10% tariffs on all Chinese imports to the U.S. earlier in February. That was on top of existing tariffs on specific Chinese goods dating back to Trump’s first term. China has since retaliated with up to 15% tariffs on a range of U.S. goods and more export controls on elements critical to the production of modern high-tech products.
Development and growth plans for smartphone makers, renewable energy companies, and the broader technology sector all depend in part on access to rare earth elements. Apple has been increasing its use of recycled materials for its batteries and devices to help lower its need for newly mined and refined materials.
Demand is only expected to grow over the next few decades, especially with advances in computing power and artificial intelligence technology.
The International Energy Agency expects total demand for rare earth elements to surge 72% to 134 kilotons between 2021 and 2030. Supply requirements are expected to rise at roughly the same rate, but the total amount would lag demand at 98 kilotons.
Rare earth metals have been behind some recent geopolitical issues as the U.S. and other nations try to access sources outside of China. The U.S. is the world’s second biggest producer of rare earth metals, with about 12% of the global total.
President Donald Trump’s pitch to acquire Greenland comes amid climate change that is expected to make more of the Arctic island’s resources available. Melting ice is expected to make rich deposits of rare earth elements, lithium, and other natural resources more accessible.
Trump has also mentioned future aid deals with Ukraine, another source of rare earth elements.
—Damian J. Troise, AP Business Writer
Autentifică-te pentru a adăuga comentarii
Alte posturi din acest grup
Since its founding in 2018, Hello Divorce has aimed to make the divorce process less stressful and more cost-effective. The startup helps spouses accurately
Clippy has become an unlikely protest symbol against Big Tech.
The trend started when YouTuber Louis Rossmann ">posted a video
Back in March, Facebook introduced a new feature that wasn’t exactly new. The Friends tab—de
While AI features have been creeping into pretty much every popular br
