The topic of critical material supply chains is becoming a focus of politics.
The United States government is intensifying its focus on the issue of critical raw materials. On Monday, the Department of Defense announced the formation of the Strategic and Critical Materials Board of Directors, which will advise the Under Secretary of Defense for Acquisition and Sustainment on issues related to supply chains and the country’s national defense stockpile. The Board will include representatives from the Departments of Defense, Energy, State, Commerce, and the Interior, as well as congressional Armed Services Committees. The first meeting is expected to take place later this year.
Supply chains and critical materials have emerged as a pressing political issue, particularly in Washington. The ongoing trade tensions between the United States and China have highlighted Beijing’s strategic advantage in critical minerals: In December, China imposed a sweeping export ban on gallium, germanium, and antimony to the U.S., followed in January by plans to restrict exports of key refining technologies for lithium and gallium, which would not only affect the U.S. but are intended as general export stops.
Earlier last year, the United States introduced tariffs on Chinese goods to safeguard strategic domestic sectors, with President-elect Donald Trump pledging additional measures. However, some analysts have doubts over tariffs’ effectiveness in reducing the U.S.’s dependence on imported critical minerals, which are vital for high-tech industries such as semiconductors, solar panels, and electric vehicles.
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