# Periodic Table Leverage At base of it all lies the unnerving perceived leverage of the periodic table. China's near-monopoly over refined rare earths—metals the U.S. scarcely processes—gives it ultimate chokepoint in the new geopolitical alchemy. Beijing controls elements essential for: - Permanent magnets (EVs, wind turbines, military systems) - Electronics (smartphones, computers, servers) - Batteries (energy storage, electric vehicles) - Defense systems (precision-guided munitions, radar, sonar) - Clean energy (solar panels, wind turbines) ## The Dominance China: - Produces ~60% of world's rare earth elements - Refines ~90% of them - Controls ~90% of permanent magnet production - Deploys 300,000 industrial robots a year, mechanizing global factory floor U.S. scarcely processes these critical materials domestically, creating strategic vulnerability. ## Why It Matters Contest not only of ideology but of infrastructure—where America for now rules realm of bits while China consolidates dominion of atoms. America's software supremacy rests precariously on hardware dependency. Can't run AI without GPUs. Can't make GPUs without rare earths. Can't refine rare earths without China (currently). ## The Response Signs of optimism and change in Pentagon and Treasury to move fast and shake things up to be more competitive: - Domestic mining projects - Refining capacity buildout - Alternative material research - Recycling technologies - Friend-shoring critical supply chains But reality: these take 5-10+ years to scale. China built this position over 30 years. ## Investment Angle Rare earth producers outside China command premium multiples. Companies enabling: - Domestic rare earth extraction - Alternative magnet technologies - Recycling and recovery - Substitution technologies Have structural tailwinds from geopolitical necessity, not just economics. Related: [[Battery Materials]], [[Physical Assets Revival]], [[Defense Supply Chain Fragmentation]], [[Alpha in Atoms - Reflection on the Physical Inversion]], [[Metals]] --- Tags: #deeptech #systems