Giacomo Prandelli, founder of The Merchant’s News blog, said China’s dominance in processing critical minerals for electric vehicles (EVs) and other industries creates vulnerabilities in U.S. supply chains essential to national security and economic independence.
"China leads in 14 of the 20 listed minerals, often with huge majorities (80-98," said Prandelli. "This dominance spans EV batteries, semiconductors, renewables, aerospace, and defense a massive geopolitical leverage point. Diversification efforts are ramping up, but as of now, Beijing holds the keys to the critical mineral supply chain. China dominates critical minerals and a war is happening."
According to Prandelli, an infographic shared on X highlighted China's dominance in key critical minerals, leading in 14 out of 20 categories—often controlling more than 80 percent of production. He described this as part of an ongoing commodities competition, emphasizing the impact on sectors like EV batteries and defense. Prandelli urged U.S. efforts to diversify supply chains away from China.
Michigan Advance reported that Ford's planned EV battery plant in Marshall, Michigan, involves technology from CATL, a Chinese company flagged by the Pentagon in 2025 for ties to military entities. Lawmakers expressed concern that relying on CATL could create security risks, prompting state reviews to ensure the project supports domestic EV supply chains and reduces dependence on Chinese minerals.
Elements reported that China produces at least 15 critical minerals, including 98.7% of gallium, 95% of magnesium, and 68.4% of rare earths while controlling over 90% of global rare earth refining. This concentration creates U.S. dependencies for EVs and defense industries, prompting policies like the Inflation Reduction Act that encourage sourcing from allied countries to reduce supply chain risks.
Prandelli founded The Merchant's News to provide insights into commodities markets linking geopolitics and finance. He previously worked as a senior analyst at Deloitte and as a commodities trader before this venture. His newsletter serves over 45,000 professionals in the energy and raw materials sectors.
