Silicon metal, the second-most abundant element on Earth, has become scarce, increasing the risks from car parts to computer chips and bringing out another challenge for the global economy.
- The shortage in silicon metal has led to a spike in prices up 300% in less than two months. It’s the latest in a series of disruptions, from disrupted supply chains to power crises, which is causing destructive environments for companies and consumers.
- The worsening situation has pressured some companies to declare force majeure, which frees companies from liability in case of extraordinary events.
- Norwegian chemicals manufacturer Elkem ASA stated they and other companies are suspending the sales of silicone-based products due to shortage.
- The silicon problem also reflects how the global energy crisis is sticking out through economies in numerous ways. The cutting of output in China, the world’s biggest silicon producer, comes from the efforts to reduce the level of power consumption.
Silicon accounts for 28% of the Earth’s crust by weight is one of the world’s most diverse building blocks. It is used in manufacturing various products ranging from computer chips and concentrate to glass and car parts.Source: Bloomberg.
