Highlights
- US faces significant vulnerabilities in critical material sourcing, with heavy reliance on imports and Chinese processing of key resources.
- Geopolitical instability and rising technological demands are driving urgent needs for diversified material supply strategies.
- Proposed solutions include developing domestic sources, advancing recycling technologies, and creating public-private partnerships to secure strategic materials.
Jennie S. Hwang (opens in a new tab) is a businesswoman and entrepreneur in materials science and engineering.) An article reprinted from SMT007 Magazine emphasized this summer in The Bridge the urgent need to address critical material and mineral shortages driven by geopolitical instability, growing technological demand, and the global shift toward electrification. Hwang argues for a holistic, cross-sectoral approach to secure access to these vital resources, which are essential for industries like energy, technology, and defense. Don’t say experts like MS. Hwang didn’t warn various industries, such as automobiles, defense, and others. Given China’s recent move to restrict select minerals and now drones, Hwang’s piece was prescient.
Geopolitical instability, such as the Russia-Ukraine war and the Hamas-Israel conflict, has intensified supply chain risks, particularly for materials sourced from conflict zones or adversarial nations. This underscores the necessity of diversifying supply chains to reduce reliance on high-risk regions like Russia and China.
Hwang, a PhD in Materials Science and Engineering and CEO of H-Technologies Inc., points to concurrently rising electricity consumption, fueled by the proliferation of data centers, artificial intelligence, and renewable energy technologies, driving demand for critical resources such as lithium, nickel, and rare earth elements.
USA and West Dependence on China
The U.S. remains vulnerable due to its heavy reliance on imports for key materials, much of which is processed in China, which dominates production in sectors like battery-grade manganese and rare earth magnets. Materials like nickel, lithium, and palladium are critical for electric vehicles, semiconductors, and national defense, highlighting their strategic importance for economic security and global competitiveness.
To address these challenges, Hwang proposes several strategies, including developing domestic sources, advancing recycling technologies, leveraging AI for material discovery, and fostering public-private partnerships.
She also highlights the success of managing “conflict minerals” like tantalum and gold under the Dodd-Frank Act as a model for tackling critical material challenges.
However, there are limitations to these strategies. While AI shows promise, its application in material discovery and recycling is still nascent, meaning immature. Alternatives like sodium-ion batteries, though cheaper and more abundant, require significant development to compete with lithium-ion technology.
Furthermore, achieving self-reliance may demand substantial time and investment, and diversification alone may not fully insulate the U.S. from global supply chain disruptions.
Hwang’s article calls for a robust and integrated national strategy that balances economic, environmental, and security concerns. While comprehensive, its feasibility depends on overcoming significant technological, economic, and geopolitical barriers.
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