Part 10/17:
A vital concern is China’s strategic positioning. The country’s dominance over critical resources like rare earth metals, essential for batteries and electronics, poses risks. China’s control over 90% of the world’s rare earth refining capacity creates vulnerabilities, especially if China leverages supply restrictions for geopolitical leverage.
Simultaneously, discussions highlight the importance of supply chain diversification and localization—particularly in AI hardware, robotics, and vehicle manufacturing—to mitigate risks. Musk suggests that future humanoid robot supply chains could be more localized, providing strategic resilience.