China controls world’s supply of most critical metals – Richard Mills

2022.12.13

Despite keeping a lower profile when it comes to commodities consumption than during the last super-cycle, from 2003-11, arguably China will continue to need more commodities than the rest, for traditional infrastructure (roads, bridges, airports, etc.), green projects needing a broad range of electrification/ decarbonization metals, and to feed an expanding, and evolving, manufacturing base.

Building more highways, railways and airports, the traditional “blacktop infrastructure” are seen as a way to stabilize the economy.

But Beijing is also advocating for so-called “new infrastructure”, including 5G, ultra-high-voltage power transmission, big data centers, industrial internet and artificial intelligence.

Not only has China outspent the United States and led the world on infrastructure investments, it has also worked relentlessly over the past decade to lock up the world’s metals with off-take agreements, creating import dependencies for a number of key minerals in the US and other Western countries.

China’s near-complete dominance of ‘green economy’ metals

China understands that mining is the lynchpin, that enables an economy to move from low-tech producer of inexpensive goods for export, to high-tech manufacturer of goods and services the future world economy needs. Because they have the raw materials.

It won’t be long before Westerners wake up to the fundamental truth that who controls the resources, controls the world. When the realization sets in, that we’ve been snookered, the mad rush to secure what’s left will surely ignite a fire under metals prices.

Richard (Rick) Mills
aheadoftheherd.com
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