The article discusses the growing importance of rare-earth elements in the technology sector, particularly in the production of chips and AI systems. It highlights the ongoing tensions between the US and China over the control and supply of these critical materials. China currently dominates the global rare-earth market, accounting for over 60% of the world’s mining output and an even larger share of processing. The US, on the other hand, has become increasingly reliant on Chinese imports, raising concerns about potential supply disruptions and national security risks. The article explores the efforts by both countries to secure their rare-earth supply chains, including investments in domestic mining and processing facilities, as well as the development of alternative technologies that could reduce the reliance on rare earths. It also examines the broader geopolitical implications of this resource competition, which could shape the future of the tech industry and the global balance of power.
Source: https://www.businessinsider.com/rare-earths-tech-war-explainer-chips-ai-china-us-2024-11