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We now live in a world where the tensions between United States and Russia are more intense that they were during the Cold War. The American Defense sector is understandably worried about its military’s technology elements’ supply chain and justifiably so. As the United States doesn’t have its own technology metal sources, it is forced to allow Lockheed Martin to use parts procured from China. Apparently, the Pentagon’s hands are tied. After already having advocated several regulations to tighten the use of these metals, Chinese government still holds command over 90% of the world’s dysprosium and neodymium, which is the key component used in the manufacturing of guidance systems of new aircrafts, drones, and missiles. Although the Chinese producers perceive and claim that they are currently oversupplying the market with technology metals at the moment, as hybrid and electric cars gradually become more popular, manufacturers will need tech metal resources to focus on their production. Thus, in the long term, the demand for these can only increase.

The Catalyst that Could Send Technological Element Prices Sky-high

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We now live in a world where the tensions between United States and Russia are more intense that they were during the Cold War. The American Defense sector is understandably worried about its military’s technology elements’ supply chain and justifiably so. - PowerPoint PPT Presentation

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Page 1: The Catalyst that Could Send Technological Element Prices Sky-high

We now live in a world where the tensions between United States and Russia aremore intense that they were during the Cold War. The American Defense sector isunderstandably worried about its military’s technology elements’ supply chainand justifiably so. As the United States doesn’t have its own technology metalsources, it is forced to allow Lockheed Martin to use parts procured from China.Apparently, the Pentagon’s hands are tied.

After already having advocated several regulations to tighten the use of thesemetals, Chinese government still holds command over 90% of the world’sdysprosium and neodymium, which is the key component used in themanufacturing of guidance systems of new aircrafts, drones, and missiles.Although the Chinese producers perceive and claim that they are currentlyoversupplying the market with technology metals at the moment, as hybrid andelectric cars gradually become more popular, manufacturers will need tech metalresources to focus on their production. Thus, in the long term, the demand forthese can only increase.

Page 2: The Catalyst that Could Send Technological Element Prices Sky-high

China Has Evolved From Being an Economic Superpower to a MilitaryOne

China is an economic power that’s expecting to surpass even the UnitedStates in terms of GDP by as early as 2050, if not sooner. Just like anyother economic power, China has witnessed growth in nationalism andhas reacted accordingly by intensifying its geostrategic and military goals.The geopolitical climate at the moment will increase tensions in findingsources of critical tech metals, all the while, corresponding to a need tomaintain a certain level of military preparedness in the United States.

As a result, Lockheed Martin, General Dynamics, and Boeing, all will beexpecting a longer period of growth. Let us not forget about UnitedTechnologies or General Electric, as all of these companies combined,make everything from everyday electronics to fighter jets and heavy-dutytransport vehicles to helicopters.

Page 3: The Catalyst that Could Send Technological Element Prices Sky-high
Page 4: The Catalyst that Could Send Technological Element Prices Sky-high

Boeing and Lockheed Martin to Develop the Next-Gen Bomber

The last bomber to be made by Americans was the B2, and it was developedmore than 30 years ago. What the pentagon is concerned about is that itsfleet of about 160 bombers, comprised of B1, B2, and B52, is outdated andvulnerable the latest Chinese and Russian defense systems. Thus, they planto manufacture one hundred more stealth bombers armed with state-of-the-art engines and weapons systems to fly at high speeds, over great distancesand breach even most sophisticated defense systems.

This in no way means that Washington is considering waging war againstChina and Russia. On the contrary, the aim is to deter any of these countriesfrom engaging with the US. This fearsome new aircraft won’t ever have todrop a bomb if it manages to fulfill its geo strategic goals.

Keeping to the context of trade and economics, the geo political tensions inthis part of the planet are rather significant, given that the latestdevelopments will make United States more concerned over procuringtechnological elements that are known for their magnetic properties, and arecritical for manufacturing anything from a cell phone to guidance systemsfor missiles.

Page 5: The Catalyst that Could Send Technological Element Prices Sky-high

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