#GeopoliticalWarning | @OrangelGilCrypto
🔋 The energy boomerang policy
The U.S. government's decision to impose a 93.5% tariff on critical battery materials from China has shaken the global geoeconomic board. What Washington considers a bold action to reduce external dependence could turn into an unprecedented energy inflation crisis in the West.
🧪 What’s at stake? More than lithium
The affected materials —such as lithium, cobalt, and graphite— are vital not only for electromobility but also for the ecosystem of renewable energy, backup systems, and sustainable digital mining. China, which accounts for more than 75% of the global refining of these elements, could retaliate by blocking key exports, destabilizing the entire production cycle.
According to Fatih Birol, Executive Director of the International Energy Agency, “the energy transition needs global cooperation, not trade isolation.”
🌍 Direct impact on the price of innovation
The market for electric vehicles, solar energy, and decentralized storage systems (DePIN) will be hit with immediate price increases. Companies like Tesla, BYD, and battery manufacturers like CATL already anticipate increases of between 25% and 40% in their production costs.
This could hinder investments in sustainable projects and even delay blockchain developments that rely on autonomous energy infrastructure.
📉 A ticking time bomb for the crypto sector
The rise in battery material prices jeopardizes energy decentralization, crucial for crypto projects that drive self-sufficient validators and Web3 devices. Platforms like Helium, Filecoin, or Render (RNDR) may see their operating costs skyrocket, generating cascading effects on the profitability of staking and distributed computing.
Economist Paul Krugman already warned in The New York Times that “energy protectionism could generate the next big economic bump for the U.S. and its allies.”
🛑 Can the West really win this war without shooting itself in the foot?
The measure, far from representing independence, accentuates the fragility of Western value chains, exposed to unilateral decisions and without viable short-term replacements. Europe watches cautiously, while Latin America and Africa could become the new battlegrounds for strategic resources.
