Yesterday, U.S. media reported: "The U.S. government, in conjunction with private investors, invested 1.4 billion U.S. dollars into Vulcan Elements and New Elements Technology to build magnet factories and rare earth recycling refining. The Pentagon and the Department of Commerce respectively contributed 620 million and 50 million, aiming to break China's dominant position in the rare earth supply chain. This is another step toward de-Chinization by the U.S., following its investments in MP Materials and Intel. Rare earth magnets are key materials in core areas such as AI and military, and China has long controlled the entire industry chain. Industry insiders believe that the U.S. will find it difficult to quickly break the situation: Vulcan Elements was only established two years ago, and the U.S. rare earth industry lacks technology and experience, while China's advantage stems from decades of accumulation. Rebuilding the supply chain cannot be achieved in the short term."
[Witty] 1.4 billion dollars invested in rare earths: political performance can't hide industrial shortcomings! The U.S. government's 1.4 billion investment in rare earth companies' anti-China farce is essentially using taxpayers' money to pay for strategic anxiety. Even if startups like Vulcan Elements get funding, they can't fill the technological gap in rare earth refining and magnet manufacturing in the U.S. China holds 85% of extraction patents and 98% of high-end magnet production capacity, which is not easily replaced in the short term. The so-called supply chain restructuring seems more like empty talk: mining development requires ten years, environmental disputes often cause bottlenecks, and the U.S. military and AI industries still rely on Chinese finished products now. 1.4 billion dollars is a drop in the bucket in the face of a trillion-dollar industry barrier. Rather than breaking through, it's more like putting a political curtain over the reality of dependence on China?
Original: www.toutiao.com/article/1847846526196739/
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