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Pentagon struggles to find ways to expand rare earth extraction capacity in the United States as trade war with China threatens to disrupt critical mineral flow to the United States, Reuters reports .
Currently, about 85% of the world's global rare earth mining and refining capacity is located in China, placing the United States in a risky position. This position was made even more risky when only a few weeks ago, China threatened to restrict rare earth exports to the United States. If this happens, the production of items requiring minerals would be disrupted, including iPhones and other consumer electronics, lasers, electric vehicles and more.
The United States imports 80% of the rare earths that they used between 2014 and 2017, the United States only home to one rare earth mining company: Mountain Pass. But while Mountain Pass can extract minerals, it does not have the power to treat them. Thus, he ships the minerals to China to be refined. Ring the alarm bells.
In addition, MP Materials, the owner of Mountain Pass, is partially supported by a Chinese company, which holds a minority non-voting interest in MP Materials. Ding Dong.
To avoid a situation that could be disastrous, Washington is finally ready to act, asking miners to develop plans to develop rare earths on US soil, including extraction and treatment facilities, according to Reuters. The Pentagon calls for a quick response from the miners – just weeks before July 31.
In addition to the demand for minors, the Pentagon also asked manufacturers to detail their future demand for rare earths in order to better assess the country's mineral requirements in the future.
Even if the Pentagon manages to develop rare earth minerals in the United States, it will be years before the United States can give up its habit of China's minerals.
By Julianne Geiger for Oilprice.com
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