And then he ran away in a flash, "China caught the relay rod rare earth | United States | China"
On June 23rd, the website of the bimonthly issue of Foreign Policy published an article titled "The United States Lost the Relay Rod in the Rare Earth Race" by Christina Lu. The full text is excerpted as follows:
If the global competition for rare earths - F-35 fighter jets and missile guidance systems cannot be separated from rare earths - is a relay race, then China grabbed the baton in the 1980s and ran away quickly. The United States, which used to be a leader in the industry, and other countries around the world have been left behind.
The deterioration of US China relations has once again stimulated the United States' efforts to return to this game. In order to reduce dependence on Beijing, Washington has intensified efforts to revitalize its rare earth industry. Despite this momentum, experts believe that lawmakers are still at a loss on how to combat China's economies of scale and fill the huge gap in professional knowledge. For a long time, these two key weaknesses have been hindering the development of the US rare earth industry.
Jack Lifton, Executive Chairman of the Key Mineral Resources Association, said that to rebuild the rare earth industry in the United States, "you need well educated people, experienced people, mines and processing systems that can be put into use, which do not exist in the United States.".
Greg Hayes, CEO of defense giant Raytheon, said, "More than 95% of rare earth materials or metals come from China or are processed within China, with no other choice. If we have to withdraw from China, it will take many years to rebuild this capability domestically or in other friendly countries."
From submarine sonar to aircraft disk drive motors, the US military relies almost entirely on China's extensive rare earth value chain.
On February 13th, workers were working in the production workshop of Baotou Jiangxin Micro Motor Technology Co., Ltd.
Former US President Trump is concerned about this dependence, issuing an executive order on rare earths and increasing funding for domestic businesses. The Biden administration went further by incorporating rare earth projects into the Defense Production Act and expanding rare earth inventories. However, James Kennedy, President of Thorium and Rare Earth Consulting, pointed out that overall, the efforts of the United States have not brought about significant changes. He said, "For 15 years, the United States has been promoting, advocating, or advancing policies in this area, but without exception, it has suffered a disastrous defeat."
Part of the trouble is that lawmakers are facing an almost daunting policy challenge: building the entire rare earth industry from scratch, while China has been leading for decades.
In recent months, Congressmen Guy Reshental and Eric Swawell have proposed bipartisan legislation hoping to use tax credits to stimulate domestic magnet production. This is the latest initiative in a series of efforts by the government to encourage production at the top of the rare earth value chain. Some experts warn that this may not achieve the expected results.
Stan Trout, founder of Spontaneous Materials, said that this legislation may encourage companies to produce larger magnets - such as those used in wind turbines - rather than those used in the defense sector.
In addition to economic factors, the efforts of the United States are also hindered by a huge gap in professional skills, which has been widening for many years. As China injects resources and funds into the research work of universities, laboratories, and other institutions, the interest and investment of the United States are decreasing.
Lifton said, "In China, the mining, refining, processing, manufacturing, and production of end use products for rare earths is a respected and profitable business, with tens of thousands of people involved. But here, no one is doing it."
Can Washington establish its own rare earth industry or continue to rely heavily on China? The impact of this issue goes far beyond the field of national defense.
Kennedy said, "If electric vehicles represent the future mode of transportation, then the United States or the European Union really don't have much room for development." He also added, "China can decide who wins and who loses."
