The U.S. economy could see a $3.4 billion hit if China imposes a total ban on gallium and germanium, critical components for computer chips, according to new federal research.
The U.S. Geological Survey on Tuesday unveiled those findings along with a model the agency created to assess the economic effect of disruptions on supplies of critical minerals.
Under the Energy Act of 2020, a critical mineral is a material that’s essential to the nation’s economic and national security but faces vulnerabilities to disruption.
Export bans are a risk the U.S. faces, said USGS Director David Applegate. He noted that China imposed export licensing controls on mineral commodities containing gallium and germanium in 2023, requiring state approval for all exports.
