The Catalyst that Could Send Technological Element Prices Sky-high

1. 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.

2. China Has Evolved From Being an Economic Superpower to a Military One China is an economic power that’s expecting to surpass even the United States in terms of GDP by as early as 2050, if not sooner. Just like any other economic power, China has witnessed growth in nationalism and has reacted accordingly by intensifying its geostrategic and military goals. The geopolitical climate at the moment will increase tensions in finding sources of critical tech metals, all the while, corresponding to a need to maintain a certain level of military preparedness in the United States. As a result, Lockheed Martin, General Dynamics, and Boeing, all will be expecting a longer period of growth. Let us not forget about United Technologies or General Electric, as all of these companies combined, make everything from everyday electronics to fighter jets and heavy-duty transport vehicles to helicopters.

4. Boeing and Lockheed Martin to Develop the Next-Gen Bomber The last bomber to be made by Americans was the B2, and it was developed more than 30 years ago. What the pentagon is concerned about is that its fleet of about 160 bombers, comprised of B1, B2, and B52, is outdated and vulnerable the latest Chinese and Russian defense systems. Thus, they plan to manufacture one hundred more stealth bombers armed with state-of-the- art engines and weapons systems to fly at high speeds, over great distances and breach even most sophisticated defense systems. This in no way means that Washington is considering waging war against China and Russia. On the contrary, the aim is to deter any of these countries from engaging with the US. This fearsome new aircraft won’t ever have to drop a bomb if it manages to fulfill its geo strategic goals. Keeping to the context of trade and economics, the geo political tensions in this part of the planet are rather significant, given that the latest developments will make United States more concerned over procuring technological elements that are known for their magnetic properties, and are critical for manufacturing anything from a cell phone to guidance systems for missiles.

5. Dubai, UAE Office #1702, One Business Bay First Al Khail Street Tel: +971 (0) 4447 0990 Fax: +971 (0) 4453 8811 info@electio-invest.com