Critical minerals are required for the manufacturing of electronics, aerospace equipment, medical devices, and renewable energy technologies, making them essential for a country’s economic and national security. These materials have been at the center of China’s domestic and foreign policy for many decades, and China’s ability to integrate internal industrial policies with foreign trade and investment policies has allowed them to gain dominance in the market. Meanwhile, the US has lagged behind China in terms of both access to and processing technology of critical minerals. The country has been heavily dependent on China for its critical minerals and struggles to find an alternative supplier.
China’s announcement to impose export restrictions on seven rare earth elements on April 4th has opened many conversations surrounding critical minerals, especially regarding the US and its supply chain vulnerabilities. What has China done to achieve their global dominance in the critical minerals sector, and what can the US do to address the overdependence issue they are facing today? To answer these questions and more, host Bonnie Glaser is joined by Gracelin Baskaran, the director of the Critical Minerals Security Program at the Center for Strategic and International Studies. She is a mining economist whose area of expertise is critical minerals and trade.
Timestamps
[00:00] Start
[02:13] US Dependencies on Rare Earths and Critical Minerals
[03:51] Sourcing from Latin America, Africa, and Asia
[06:28] Environmental Harm from Mining and Processing
[08:11] Deliberate Suppression of the Price of Rare Earths in the Market
[11:06] Chinese Exports Restrictions on Seven Rare Earth Elements
[14:08] US Administrations’ Approaches to Critical Minerals Vulnerability
[20:02] 2010 Fishing Boat Accident and Japan’s Response
[24:00] What might China do moving forward?
[27:42] Timeframe for the US to Catch Up to China
