Exploring the Urgent Challenge of Securing Essential Raw Materials

According to a recent publication by Exiger’s president, Carrie Wibben Kaupp, U.S. supply chains must adapt to the looming threat posed by China’s potential restrictions on critical minerals.

The issue of China’s stronghold over essential minerals isn’t new, but it has intensified due to the ongoing trade tensions with the U.S. Wibben Kaupp highlights that this situation has led China to “considerably escalate weaponization of the periodic table.”

The reliance of the U.S. and its allies on Chinese mineral supplies is staggering—seven critical minerals are sourced entirely from China, while another 30-40% depend heavily on them for half their needs. “This creates a strategic vulnerability that could be catastrophic if they choose to halt exports,” she warns.

Recently, China has indeed restricted exports of several rare earth elements, further straining relations with the U.S., wich began during the Trump Management when hefty tariffs were imposed on Chinese imports.

Given this precarious situation regarding vital minerals used in various high-tech applications, it’s crucial for leaders in U.S. supply chains to fully understand their product compositions. Many manufacturers today lack insight into their materials all the way back to raw sources; typically,they only have visibility up to one tier of suppliers.

This necessary details often remains hidden within technical documents that seldom reach top executives. To gain better visibility and disseminate crucial data throughout their organizations, companies should leverage advanced technology tools like artificial intelligence. These systems can dissect bills of materials and trace sourcing back through multiple tiers.