#supply-chain-vulnerability

#supply-chain-vulnerability

Lagarde argued that Europe was vulnerable because of a dependency on third countries for our security and the supply of critical raw materials. She cited China's control of the supply of rare earth metals that are crucial in electric motors and wind turbines, as well as the choke point of power chips made by Nexperia in China that threatened to shut down production across the global car industry.

"It's scandalous that we don't have a rare earth strategic reserve," Siegel told CNBC's Squawk Box Monday, calling it a major security failure. "We let China monopolize 90% of refining rare earth materials. Where were we, realizing the importance of these?" Siegel urged the U.S. to build a rare earth stockpile similar to the Strategic Petroleum Reserve, which was created in 1975 after the Arab oil embargo left the country exposed to geopolitical blackmail.