Silver is the first classic precious metal to be added to the list of critical raw materials by the US authorities. At the same time, it warns of the serious consequences of possible supply shortfalls for rhodium.
The U.S. Geological Survey (USGS) has published the draft of its new list of critical raw materials published. It is intended to serve as a basis for future strategies, investments and authorisation decisions in the USA. A total of 54 raw materials can be found in the draft, including six new additions. New additions include Silver and Rhenium. This proposal emphasises the growing importance of precious and technology metals. Silver only recently reached a historic price level, and the importance of the metal in the global commodities market is steadily increasing.
Rhodium with a particularly high supply risk
Parallel to the draft, the USGS published a report containing a new assessment model for supply chain disruptions and showing the potential economic impact on the USA. The ten minerals with the greatest economic risk from supply disruptions, weighted by probability, are: samarium, rhodium, lutetium, terbium, dysprosium, gallium, germanium, gadolinium, tungsten and niobium.
With the exception of niobium and rhodium, the production of these elements is heavily concentrated in China. As Beijing has tightened its export regulations several times in recent years and thus restricted deliveries abroad, this dependency poses an increased risk for US industries that rely on a stable supply of raw materials.
Particularly emphasised is Rhodium. According to the USGS, a complete loss of supply from the platinum mines in South Africa could result in a drop in US gross domestic product of USD 64 billion. However, the weighted probability reduces the expected effect to USD 2.5 billion.
Precious metals expert Philipp Götzl-Mamba at TRADIUM: "We are not surprised that silver is now on the US list of critical minerals. The past has already shown us how critical supply shortages of rhodium are. The metal is most commonly used in automotive catalytic converters. Stricter standards and restricted supply chains due to coronavirus or the war in Ukraine, for example, have driven the metal to unprecedented heights. At times more than ten times the price of gold. This sends a clear political signal from the US administration: Washington recognises its dependence and is striving to protect its domestic economy by securing raw materials."
