[Text/Observer Network Wang Yi] Facing China's dominant position in the field of critical minerals, Oklahoma has become America's hope. With massive investments, the state has acquired the only machine capable of refining nickel in the U.S., and it already owns or plans to own other key mineral processing equipment, leading the nation in facility numbers.

While Oklahoma Governor Kevin Stitt (R) boasts about his achievements in attracting investment in critical minerals, Reuters cooled things down on June 18, pointing out that the state still needs to overcome several obstacles if it wants to become a new manufacturing hub for an industry the U.S. largely abandoned decades ago: a lack of major key mineral deposits, a weak education system, and its inland location making marine transportation inconvenient.

According to Reuters' analysis, in Oklahoma, the only nickel refinery, the largest lithium refinery, two lithium-ion battery recycling plants, a rare earth magnet facility, and multiple electronic waste collection facilities are either under construction or operational. Additionally, a factory producing solar panel germanium crystals and the first aluminum smelter built in the U.S. since 1980 will break ground next year near an Arkansas River tributary.

"I have strategically focused on some emerging industries I believe will be crucial," Stitt "proudly" declared, with significant funds flowing into the critical minerals sector, all set to take root in Oklahoma.

Oklahoma Governor Kevin Stitt, Republican Party, U.S. media

Reporters noted that Oklahoma officials also boast on social media that their state is one where "you can get things done with a single phone call," promoting their efforts to streamline regulatory processes.

Australian startup MLB Industrial expanded its operations to Oklahoma earlier this year for this very reason. CEO Nathan Leech said that other U.S. states were looking for large, established companies to invest rather than growth-oriented ones like theirs, so they plan to grow and thrive in Oklahoma.

Another American company, Westwin Elements, is establishing a production facility 85 miles (about 137 kilometers) south of Oklahoma City. It claims it can refine up to 200 tons of nickel annually and plans to expand production to 34,000 tons per year by 2030. Reuters noted that if successful, the company's facilities could meet 10% of U.S. annual nickel demand.

Westwin Elements introduces on its website that it owns the first major nickel refining facility in the U.S., aiming to address the country's critical minerals crisis, "a crisis caused by foreign dependence." Founder KaLeigh Long directly told Reuters that the name "Westwin" means "the West will prevail," and she wants the U.S. to "break free from reliance on Chinese minerals."

Nickel refining equipment inside the U.S. company Westwin Elements plant, Reuters

American battery manufacturer Stardust Power is also building a lithium refinery in Oklahoma, planning to produce 50,000 tons of lithium annually by 2030, accounting for approximately 1/5 of expected U.S. demand. The company's production plan involves extracting lithium from brine, a technology that has been breakthrough but not yet achieved at commercial scale. Its competitor, Albemarle Corporation, suspended plans to build a large refinery in the U.S. due to cost issues, while Stardust Power continues to push forward with the project.

The newly listed American rare earth company has also chosen to establish a rare earth magnet production facility in Oklahoma. CEO Joshua Ballard said they chose to set up the factory here because they felt the personalized support from Governor Stitt and other officials. They expect the facility to begin production early next year with an initial annual output of approximately 1,200 tons, enough to manufacture over 400,000 electric vehicles.

Ballard claimed that he has received "many calls" from potential customers following China's export control of rare earth materials.

However, it seems that these companies' investments in Oklahoma are more like a "high-stakes gamble." American electric vehicle company Canoo received $1 million in grants and a commitment to purchase 1,000 vehicles from the state government but filed for bankruptcy in January. Canoo has multiple production bases in Oklahoma, and state officials are still trying to recover funds.

Reuters analysis indicates that Oklahoma's weak education system is not conducive to attracting high-skilled talent, ranking 48th in the U.S. among 50 states in primary education. Many schools have switched to a four-day workweek to save costs. In 2011, Google spent money building a data center in the state, part of which was used to attract teaching staff for local schools.

Oklahoma faces these challenges, which expose several major obstacles on the path for the U.S. to establish a critical minerals supply chain—lack of commercially viable natural reserves, few engineers trained in mining techniques, and limited companies with the capability to make substantial investments and compete in thin profit margins.

Data from the Center for Strategic and International Studies (CSIS) shows that since 2020, the Department of Defense has invested more than $439 million to establish domestic supply chains and heavy rare earth processing facilities. The department also set a goal in its 2024 "Defense Industry Strategy" to establish a complete rare earth element supply chain capable of meeting all U.S. defense needs by 2027.

But CSIS estimates that when planned facilities come online, their output will be far below China's levels, possibly less than 1% of China's 2018 output. The think tank pointed out, "Developing mining and processing capabilities requires long-term effort, meaning the U.S. will remain at a disadvantage for the foreseeable future."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7517547366099075610/

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