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illuminem summarizes for you the essential news of the day. Read the full piece here in Reuters or enjoy below
🗞️ Driving the news: China has announced that it will restrict exports of products made from strategic metals (gallium and germanium) citing protection of national security
• These metals are crucial for semiconductors, defense technology, and other high-tech industries
🔭 The context: China's decision comes amidst rising geopolitical tensions and concerns over dependency on Chinese supply chains for critical materials
• The move is considered to be significant as China holds a dominant position in the production and processing of these strategic metals
🌍 Why does it matter for the planet: Gallium is a critical component in the production of technologies (such as semiconductors, LEDs, and energy-efficient power electronics) which are essential in reducing carbon emissions and renewable energy advancement
⏭️ What’s next: Companies are reassessing their reliance on China and are looking into alternative countries for sourcing and processing
• Nyrstar, an international producer of minerals and metals, is considering projects in Australia, Europe, and the United States to help ease shortages created by China's curbs
💬 One quote: "These actions underscore the need to diversify supply chains. The United States will engage with our allies and partners to address this and to build resilience in critical supply chains." (U.S. Department of Commerce spokesperson)
📈 One stat: China holds about one-third of the world’s rare earth reserves and has at least 85% of the world’s capacity to process these materials into usable forms (Reuters)
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