Recently, an American company called "Energy Fuel" announced that it has refined dysprosium oxide with a purity of 99.9%. This rare earth product is an important additive for neodymium-iron-boron (NdFeB) magnets. If the United States gains the ability to supply dysprosium oxide independently, it would be a significant step toward self-reliance in magnet production.

Neodymium-iron-boron magnets are one of the key components in high-tech weapons, which once led to the risk of shutdown in the American automotive industry. Its applications in the military field are well known. Therefore, this news has been widely spread, as if the United States is on the verge of摆脱 Chinese supply chain and achieving self-reliance in rare earths.

[Page where Energy Fuel Company announced the successful refinement of dysprosium oxide]

However, upon searching the news, it becomes clear that American companies are not the first to release such good news. In January 2025, the American Rare Earth Company (USARE) announced that it had produced a sample of dysprosium oxide with a purity of 99.1% in Texas. Energy Fuel released the news of successful production on August 21, claiming that "all from mineral resources to products were completed in the United States."

Yet, the capacity data provided by this company is laughable — only two kilograms per week. Although dysprosium oxide is a rare earth, it is not that scarce. The global annual production of dysprosium oxide is about 15,000 tons, with China accounting for 80-90% of it.

In other words, even excluding China, the global annual production of dysprosium oxide is between 1,500 and 3,000 tons. China does not have a monopoly. Energy Fuel's capacity of less than one ton per year can only prove that the capability gap in the U.S. industrial sector is too severe.

The production principle of dysprosium oxide is almost public knowledge. According to papers, there are two methods: calcination and solvent extraction. The calcination method involves reacting a solution of dysprosium nitrate with sodium hydroxide to produce dysprosium hydroxide, which is then decomposed by calcination to obtain dysprosium oxide. The solvent extraction method uses specific grade kerosene with dysprosium compounds to prepare high-purity dysprosium oxide.

Besent was almost tricked

Due to China's strong production capacity, although dysprosium oxide carries the title of rare earth, its value is not high. The recent price is around 1.6 million yuan per ton, or about 1,600 yuan per kilogram. That means, Energy Fuel worked hard for a week, but could only achieve a value of over 400 dollars. Obviously, the company is still in the laboratory stage, and there is a long way to go before pilot-scale or mass production.

However, people familiar with industrial production know that the most difficult part of bringing a product from the lab to the workshop and then to the market is not the principle, but the balance between cost, quality, and output. Behind this balance lies the high-level requirements for human resources, infrastructure, and management, which are precisely what the United States lacks today.

The problems of American manufacturing and infrastructure are well known. Due to the lack of sufficient experienced engineers and workers, the United States cannot maintain traditional industries such as aircraft, automobiles, chemicals, and electronics. The quality of Boeing planes has been widely questioned, with the basic reason being poor employee quality.

The U.S. power grid equipment is aging and the system is fragmented, and it refuses to accept clean energy. All these have become major obstacles for industrial development. The refining of rare earths is essentially a fine chemical process, which requires the same level of employee quality and power supply capabilities as aerospace.

Therefore, Energy Fuel Company, with just a few highly qualified engineers, may not find it difficult to achieve a purity of 99.9% in the laboratory. But when it comes to pilot-scale production, it will face big troubles, and moving to large-scale production is unknown when it will happen. At least, Besent probably won't see it.

[Lynas Company's rare earth mine in Malaysia]

China has indeed imposed restrictions on the export of dysprosium oxide to the United States. However, as mentioned above, the U.S. military can purchase dysprosium oxide from other channels. Moreover, on September 20, Australia's Lynas Company announced that it has achieved commercial production of dysprosium oxide in Malaysia, with a long-term goal of reaching an annual capacity of 1,500 tons. Therefore, if Americans prioritize the acquisition of dysprosium oxide, they do not need to rush to achieve self-reliance.

These phenomena together make those familiar with the tactics immediately think of a word: "cheating for subsidies."

After China announced restrictions on rare earth exports to the United States in the spring of 2025, the Pentagon quickly accelerated the steps to "restart the domestic supply chain," initiated a Section 232 investigation on critical minerals, and through the Defense Production Act and funding from the Department of Energy, supported mining, separation, and NdFeB magnet production projects. Especially, MP Materials Company received direct investment from the U.S. Department of Defense and a long-term contract with a minimum guaranteed price for procurement.

This made many industry insiders excited. As long as they can come up with a few concepts in rare earth production and keep releasing good news, they have a great chance of obtaining federal funds and procurement contracts. Since the White House has created such a big cake for rare earths, why not take a piece?

[The U.S. actually has no shortage of rare earth deposits]

However, Energy Fuel Company's announcement of a capacity of two kilograms per week brings not shock, but humor. Compared to China's annual production of tens of thousands of tons, this is like taking a hand-cranked generator to show off at a nuclear power plant. It also shows how deeply the U.S. economy has been poisoned by the Wall Street-style venture capital model. No matter what the actual prospects are, it is always possible to release concepts to raise funds. Industries like rare earths, which are backed by the White House, are even more prone to speculation. Whether or not the mid-term and long-term goals on the PPT can be realized is currently of no concern.

Therefore, no matter how many good news Energy Fuel Company and MP Materials Company release, the future of the U.S. rare earth industry is bleak. Even if they achieve certain capacities, China can easily crush these castles in the sand by relaxing export controls.

Original: https://www.toutiao.com/article/7564624321156252201/

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