China turning the screws on US military, taking away key material

[Elderberry]

American Military News by Timothy Frudd   July 07, 2023

What if there were important metals unknown by the general public that held the entire U.S. military together? What if China controlled them all and is now cutting supply to the United States? Well, now it’s happening.

According to Reuters, a Pentagon spokesperson confirmed that the U.S. Defense Department announced the utilization of the Defense Production Act on Friday to increase mining and processing capacity for gallium and germanium in the United States.

Gallium and germanium are two rare metals that are crucial for the U.S. defense industry to produce high-tech chips used in the military.

“The (Defense) Department is proactively taking steps using Defense Production Act Title III authorities to increase domestic mining and processing of critical materials for the microelectronics and space supply chain, including gallium and germanium,” a U.S. Department of Defense spokesperson said.

Reuters reported that China announced Monday that it will implement export controls on both metals beginning Aug. 1. According to China’s Ministry of Commerce, the export controls will “safeguard national security and interests.”

More: https://americanmilitarynews.com/2023/07/china-turning-the-screws-on-us-military-taking-away-key-material/

[PeteS in CA]

China Restricts Export of Rare Metals Used in High-Performance Chips; Expert Says Move Mainly for Propaganda

https://www.theepochtimes.com/china-restricts-export-of-rare-metals-used-in-high-performance-chips-expert-says-move-mainly-for-propaganda_5377246.html?utm_source=partner&utm_campaign=BonginoReport

The Chinese Communist Party’s announcement of new state controls that restrict exports of gallium and germanium on July 3 is retaliation for the West’s chip sanctions on the regime, according to a Taiwan-based defense expert.

Su Tzu-yun, director of the Institute for National Defense Security Research in Taiwan, said that the move by China’s Ministry of Commerce and Customs related to the key rare earth metals used in making semiconductors is only symbolic in nature, as it will have a limited effect on the global chip industry. He said that the Chinese Communist Party’s (CCP) retaliation, effective on Aug. 1, will only accelerate the “de-risking” priorities of the United States and Europe, which may see China lose its current dominant position in the rare metal industry.

So, yes, these metals are a key ingredient in high performance ICs. OTOH, this is more than an empty symbol, in the short term. The US has a strategic reserve of Germanium, and there are other producers who probably could boost production, and eventually bring more capacity online.

OTOH, The US has no strategic reserve of Gallium, and China is far and away the largest producer thereof. So in the short term IC manufacturers will have to make do with whatever they have on hand and whatever is in the distribution pipeline. However, Gallium is a secondary product from extracting Aluminum from Bauxite, and facilities for processing Gallium could be set up outside of China and brought online. How quickly, ? It'd be a race between consumption of existing supplies and bring new production online.

In the long run - a year or three out - this will decrease the world's reliance on China as a source of exotic materials.

[Weird Tolkienish Figure]

This should be crisis mode in the media but it’s not.