Elon Musk Raises Alarm Over China’s Silver Export Controls, Citing Global Supply Risks

Elon Musk has warned that China’s planned restrictions on silver exports could pose serious risks to global supply chains, particularly for industries that rely heavily on the metal.

Responding to reports on the policy shift, the Tesla and SpaceX CEO described the move as unfavorable, emphasizing silver’s vital role in modern industrial production.

Beginning January 1, Chinese exporters will be required to secure government approval and official export licenses before shipping silver overseas.

China, the world’s second-largest silver producer after Mexico, produced more than 110 million ounces of the metal in 2024, making the policy change significant for global markets.

The announcement comes at a time when silver prices are already surging.

Prices have nearly doubled since the start of the year, reaching record levels on major exchanges including Shanghai and Comex.

Strong industrial demand combined with limited growth in supply has tightened the market and driven prices sharply higher.

Musk’s remarks underscore potential challenges for sectors such as electric vehicles, battery manufacturing, and advanced electronics, where silver is a critical input.

Analysts warn that if export controls persist, supply shortages could begin affecting these industries by 2026.

Adding to these concerns, the U.S. Geological Survey recently classified silver as a critical mineral, highlighting its increasing importance to economic stability, technological innovation, and strategic industries worldwide.