CHINA-US: US KEEN TO DECOUPLE RELIANCE ON CHINA FOR RARE EARTHS AND THEIR PROCESSING

With China having carved out a dominant position in multiple supply chains on which the US is uncomfortably reliant, there are efforts in the US to decouple this reliance, especially in rare earths. Over 60% of the global supply of rare earths – the 17 metals that are essential inputs for smart tech, electric vehicles (EVs), and advanced weaponry – is mined in China and 80% of American rare earth imports come from China. As the US starts mining more of its own minerals, it also has a problem with its processing. China dominates minerals processing. This includes the processing of rare earths, lithium, cobalt, nickel, and manganese – all of which are critical for high-tech and green manufacturing. The US has hardly any critical minerals processing capacity. MP Materials, the US’s only domestic rare earths miner, ships all of its output to China for processing.





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