China’s Control Over Rare Earths Could Have Disastrous Consequences for U.S. Manufacturing a press article
In the ongoing trade war between China and the United States, China is taking steps to further limit the market for rare earth metals, which are essential in a wide range of industries – from technology to transportation to military. Rare earths are a group of 17 metals crucial to advanced technologies, with names like terbium and dysprosium.
China currently controls nearly 70 percent of the global market for rare earths, mined from the earth’s crust. The United States, meanwhile, has just one operational rare earths mine in California, which produces around 15 percent of global rare earths. The U.S. was once a leader in rare earth production in the 1980s, but China’s efforts to control the market led to a decline in American production.
The impact of China’s restrictions on rare earths could be disastrous for American manufacturing and military power. Without an adequate supply of rare earths, sectors like the automotive industry could grind to a halt. The U.S. military could face shortages of drones, missiles, and aircraft. Tech manufacturers like Nvidia and smartphone makers like Apple could also be affected.
The Trump administration has sought deals with mineral-rich countries for rare earths and has talked about acquiring Greenland for its rare earth supply. China’s consolidation of control over the rare earth industry, through acquiring local miners and state-owned companies, gives it total control over manufacturing and exporting.
With the threat of China restricting exports of rare earths looming, American companies have been stockpiling these metals for years. However, it remains unclear how long these stockpiles would last in the event of a trade war with China. The importance of rare earths in modern industries cannot be underestimated, and the U.S. must find ways to secure its supply chain in the face of these challenges.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
