Digging for Rare Earths Yourself, the US is in a Panic
For China's rare earth industry, the US investing tens of billions of dollars to encourage companies to mine rare earths has a certain impact in the short term, but no substantial effect. The rare earth sector will continue to rise, as the US will not be able to reduce costs to China's level within the next 10 years.
On July 31 local time, a senior US official revealed that a rare earth meeting was held last week, on July 24, with participants including 10 rare earth companies and a group of US tech giants, of course also including senior White House officials from the US.
The US has put forward tens of billions of dollars to encourage them to mine rare earths, and the government will also provide a safety net. However, this move did not gain the approval of the participants, as it is unrealistic to catch up with China's output and cost in a short period of time.
Currently, China's rare earth production accounts for more than 70% of the global total, and China's own rare earth reserves exceed 30%. Therefore, for the next 5 years, even 10 years, or even longer, China will still have absolute say in the rare earth field.
In some major international affairs and policy-making, the US and Europe will still make concessions on this issue, otherwise the global chip industry, as well as military and aerospace industries, will be affected.
Specifically speaking: Within the next 1 to 3 years, the US will use trade policies to find new mineral resources globally, trying to replace China, but the cost may increase by about 40%, which is unfavorable for the US budget, and unacceptable for US companies. Therefore, they will accelerate the purchase of Chinese rare earths, and overseas funds will also flow into China in large quantities.
Within the next 10 years, China will continue to increase the scale of mining and smelting in the rare earth field, thereby further consolidating its core position and increasing the share of global exports further.
Original: https://www.toutiao.com/article/1839218546124800/
Statement: This article represents the views of the author.