During the last two years, the Chinese government has fought the US sanctions and its allies by resorting to a strategy that has proven to be highly effective. China controls the production and processing of several critical minerals essential for industries like semiconductors, renewable energy, and electric vehicles. As a result, the administration led by Xi Jinping has been enforcing strict regulations on its exports.
At the beginning of December 2024, the Chinese government chose to prohibit the export of several critical minerals to the US, among which were three essential metals for the chip industry: Gallium , Germanium , and Antimony . Shortly thereafter, China expanded its export restrictions to include Scandium and Dysprosium . However, there is one less exotic chemical element that is not receiving as much attention yet plays a crucial role — Bismuth . China not only controls this element, but it is also leveraging it to pressure the US.
Bismuth is a Fundamental Metal for the Global Technology Industry
Although it has not captured as many headlines as rare earth elements, *bismuth (Bi)* is essential not only for the integrated circuit industry but also for the entire global technology sector . This whitish, crystalline, and relatively brittle metal takes on a pinkish hue when it comes into contact with the air. It shares several physicochemical properties with lead and tin but possesses a distinctive attribute — it is much less toxic than many other heavy metals, like lead.
However, its virtues do not stop there. Bismuth is the most diamagnetic metal, meaning it is weakly repelled when introduced into a magnetic field. Additionally, its electrical resistance is high, while its thermal conductivity is very low. Interestingly, mercury is the only metal that has even lower thermal conductivity. With a melting point of about 271.3 °C and a boiling point nearing 2,000 °C , bismuth stands out among metals due to its unusual property of expanding when solidifying.
Bismuth is indispensable for welds and the tuning of thermoelectric materials.
If we were to pinpoint just two characteristics of bismuth, they would be its low toxicity index and its ability to expand when solidified. These attributes significantly justify its use in industries that have strategic importance across various countries, such as chips, consumer electronics, renewable energy, and electric vehicles. Despite its wide-ranging applications, bismuth’s pivotal role is in welds and thermoelectric material tuning.
Historically, lead was the metal of choice for welds, but its toxicity posed a significant issue. Over time, bismuth-based alloys have replaced lead, primarily because they are less toxic and have a much lower melting point. In fact, these bismuth-tin alloys play a crucial role in the manufacturing of flexible substrates , printed circuit boards, and countless electronic components. On the other hand, thermoelectric materials are fundamental for generating electricity from temperature differences, making them vital for developing efficient cooling systems.
Currently, China holds the title of the largest global producer of bismuth, controlling between 80% and 84% of the world’s supply. In 2024, China alone produced 13,000 metric tons of this vital metal, while only 3,000 tons were refined outside of its borders. This overwhelming dominance over production allows the Chinese government to impose severe restrictions on bismuth exports in retaliation against sanctions imposed by its rivals.
In the United States, several technology companies find themselves in a tight spot due to dwindling bismuth reserves. Notably, major players like Google , Amazon , and Nvidia urgently need Chinese bismuth to sustain the construction of new data centers for artificial intelligence applications (AI) . They have even requested that the US government negotiate with its Chinese counterpart. Failure to reach an agreement could severely hamper the development of AI initiatives in the US, placing American companies at a significant disadvantage. In this context, China holds a powerful card.
More information | China / Business Inside
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