The US is taking measures to reduce reliance on rare earth metals from China. This initiative has become particularly relevant amid geopolitical tensions and economic dependencies.
Importance of Rare Earth Elements in the Global Economy
Rare earth elements (REE) play a critical role in high technology and defense sectors. China controls up to 70% of world REE production and processing, creating vulnerabilities for other countries, including the US.
Key Companies for Rare Earth Refinement
The largest REE producer outside of China is Australia's Lynas Rare Earths Ltd., which is expanding its partnership with the US Department of Defense to create a processing plant in Texas. Additionally, Iluka Resources Ltd. is investing in establishing its refinery in Australia, set to launch in 2027.
Current Operations and Price Forecasts for Rare Earths
MP Materials, which operates the second-largest REE mine in the US, announced a multibillion-dollar partnership with the Department of Defense to build a new facility. This facility is expected to produce 10,000 metric tons of REE starting in 2028.
These US initiatives underscore the importance of rare earth elements in today's world and the need to establish reliable supply chains to maintain technological and defense superiority.
