The AI race is really an electro-industrial race

In this episode of Open Circuit, Stephen Lacey, Catherine Hamilton, and Jigar Shah discuss the escalating trade war between the U.S. and China, focusing on rare earth minerals and the broader "electric stack." They explore China's dominance in mining, processing, and manufacturing key components for batteries, electric motors, and power electronics, and debate whether China has overplayed its hand by restricting exports. The conversation covers the U.S. response, including potential tariffs and efforts to secure domestic supply chains through mining, recycling, and policy initiatives. They also examine the Trump and Biden administrations' strategies, the importance of offtake agreements, and the need for a coordinated approach to compete with China's integrated industrial base, while also addressing concerns about IP theft, human rights abuses, and the potential for "Greenwashing" China's practices. The hosts conclude by debating whether the U.S. is playing the wrong game by focusing on AI over electrification and the long-term consequences for the global economy.