The U.S. Rare Earth Dilemma
If oil was the key resource of the 20th century, then minerals used to produce clean energy will be the key resource of the 21st century.
During President Biden's administration, the U.S. government allocated $35 million to MP Materials Corporation to process rare earth mines located in Mountain Pass, California — the only rare earth mine in the United States. However, the company still exports its rare earth raw materials to China for further processing, as China possesses the majority of rare earth refining capacity. Similarly, the U.S. supported Lynas Corporation in Australia for rare earth mining and processing, but the company still purchases raw materials from China.
China has about 36% of the world's known rare earth reserves, but through a well-planned strategy, it has controlled more than 70% of global mining capacity. More importantly, China almost monopolizes over 90% of the global rare earth processing capacity.
In 1992, a former Chinese leader once stated, "The Middle East has oil, and China has rare earths": China's rare earth reserves account for 80% of the world's identified global reserves, and its strategic importance is comparable to the oil resources of the Middle East.
Aside from rare earths, the most coveted metals will be nickel, cobalt, lithium, and copper. The Democratic Republic of the Congo produces more than two-thirds of the world's cobalt, while Chinese companies own or invest in the majority of the country's largest cobalt mines.
China largely controls the processing market for critical minerals. Even if it is not the largest producer of raw ore, its refined cobalt, lithium, nickel, and rare earth elements exceed those of any other country in the world.
Result: Regardless of where the ore is mined, most technology-grade minerals are refined in China.
Original article: toutiao.com/article/1858341669798912/
Disclaimer: This article represents the views of the author himself.