China’s Critical Minerals Control Challenges US Dependency

Source: The post China’s Critical Minerals Control Challenges US Dependency has been created, based on the article “China’s mineral export curbs have a silver lining for the US” published in “Live mint” on 6th December 2024

UPSC Syllabus Topic: GS Paper2-International Relations- Effect of policies and politics of developed and developing countries on India’s interests,

Context: The article discusses China’s dominance in critical minerals essential for clean energy and military uses. It highlights U.S. dependence, Trump’s anti-green policies, efforts to boost domestic mining, and geopolitical tensions influencing critical mineral strategies during his upcoming presidency.

For detailed information on Issue with China’s Export Restrictions read this article here

How Does China Dominate Critical Minerals?

1. China plays a crucial role in the global energy transition due to its dominance in critical minerals.
2. It recently banned exports of antimony, gallium, and germanium to the U.S., which are used in semiconductors, ammunition, and electronics.
3. China also restricted graphite exports, a key material for EV batteries and grid storage.

Why Are Critical Minerals Important?

1. Essential for Energy Transition: Minerals like graphite, cobalt, and lithium are crucial for EV batteries and grid storage.
2. Military Applications: Minerals such as gallium, graphite, and rare earths like lanthanum are used in semiconductors, bombs, and electronics.
3. U.S. Dependency: The U.S. depends entirely on imports for 12 of 50 identified critical minerals, including gallium and natural graphite. Over 50% of its supply for 29 others comes from foreign sources.

What Is the U.S. Doing to Address This?

1. The U.S. is boosting domestic critical mineral production to reduce dependence on imports, especially from China.
2. Grants and Loans: The Pentagon funded Graphite One to mine graphite in Alaska. The company is also seeking further loans from the Export-Import Bank to counter China’s dominance.
3. Increasing Mining: Non-fuel mineral mining employed 150,000 people in 2023, almost matching oil, gas, and coal production combined.
4. Trump’s Presidency Impact: Trump supports mining and drilling. His administration may ease mine permitting, open federal lands for mineral extraction, and prioritize stockpiling critical minerals to reduce foreign reliance.

What Challenges Lie Ahead?

1. Geopolitical Tensions: China’s export bans, such as on graphite, impact U.S. supply chains.
2. Decarbonization efforts may slow under Trump, but critical mineral demand will remain high.
3. U.S. dependence on China drives urgency to build domestic capacity despite geopolitical tensions.

Question for practice:

Examine how China’s dominance in critical minerals impacts U.S. energy transition and military capabilities.