The Trump administration's escalating trade war with China risks stranding U.S. tech companies without rare earth elements and lithium—metals vital to smartphones, defense systems, and green energy. With China controlling 90% of global rare earth refining, new tariffs could disrupt access to neodymium for wind turbines, dysprosium for electric vehicles, and recycled materials for Apple devices.
Rare earth elements (17 chemically similar metals) power critical technologies:
- Cellphone vibrations and hard drives
- Military radar systems and jet engines
- Batteries for EVs and renewable grid storage
Despite being the world's second-largest rare earth producer (12% of global output), the U.S. imports 80% of its supply from China. Recent 10-15% tariff escalations now threaten lithium-ion battery production and AI infrastructure growth.
'Global rare earth demand will outstrip supply by 36% by 2030,' projects the International Energy Agency—a crisis accelerated by compute and cleantech booms.
Apple's shift to 100% recycled cobalt in batteries underscores corporate anxiety. Meanwhile, melting Arctic ice has increased U.S. interest in Greenland's untapped deposits. As Washington negotiates resource access with Ukraine and Denmark, tech firms face urgent reshoring challenges.
With China tightening export controls, industry analysts warn 72% of planned U.S. solar farms and EV factories could face indefinite delays. The Commerce Department is reportedly evaluating stockpiling strategies ahead of potential 2024 supply shocks.