A tit for tat between China and the U.S. over sales of materials used for semiconductors could have wide-ranging implications for Alaska.
On Monday the U.S. Department of Commerce added 140 mostly Chinese companies to a list of entities subject to trade restrictions. The announcement said that the companies have been found to be “acting contrary to the national security and foreign policy interests of the United States.”
In response, the Chinese Ministry of Commerce announced Tuesday that its banning exports of minerals including gallium, germanium, and antimony to the U.S.
The announcement also said that exports of graphite, critical for manufacturing batteries and a host of other industrial products, would be subject to stricter review. Notably, China is the U.S.’ primary source of graphite.
So if not from China, where will the U.S. go for these critical minerals? Companies like Graphite One hope Alaska is the answer.
The Canadian mining company wasted no time celebrating the news Tuesday morning. In an email, Graphite One touted its plans to develop “a complete U.S.-based, advanced graphite supply chain solution.”
The company is currently developing a massive mine on Alaska’s Seward Peninsula. In a bid to get the mine opened faster, the U.S. Department of Defense is covering 75% of the costs for an accelerated feasibility study. The company has previously said the mine is at least five years away. Although, once operational, it would become the largest source of graphite in the country.
Graphite One’s VP of Mining, Kevin Torpy said in a follow up email Tuesday afternoon that the latest back and forth over Chinese exports “highlights how important graphite and other critical minerals are to the United States economy and national security.”
However, it’s unclear how the trade restrictions might play out long term. Further complicating the future of Alaska’s critical mineral industry is a dizzying assortment of tariffs promised by President-elect Donald Trump.
The incoming President has signaled his intent to impose a 10% tariff on imports from China when he takes office in January.
President-elect Trump has also suggested he would impose a 25% tariff on Canada, the U.S.’ largest source of mineral imports. Economists have warned the tariffs would be paid by American companies importing the goods, and costs would likely be passed down to the end-user.
