The taste of being choked is not pleasant! The U.S. Department of Defense can't sit still anymore and has announced an investment of billions of dollars to expand rare earth magnet production capacity! On July 11, according to foreign media reports, the U.S. Department of Defense signed a strategic agreement with the domestic company MP Materials, planning to invest billions of dollars to expand rare earth magnet production capacity. The company revealed that the agreement includes building a full-process factory, achieving a complete U.S.-based production chain from raw material processing to finished magnets.
Meanwhile, the U.S. Department of Defense will become the largest shareholder of MP Materials, holding 15% of the shares. Obviously, if it weren't for the U.S. military's rare earth supply being choked, the U.S. Department of Defense would not have made the decision to invest billions of dollars to expand the U.S. rare earth production capacity. Moreover, we can see that the U.S. is really very anxious. Why do we say this? Because in capitalist countries like the U.S., the U.S. does not completely leave the rare earth supply to the market enterprises, but rather involves national power, through state ownership, showing how urgent the U.S. is.
This undoubtedly indicates from the side that our rare earth control strategy is very effective. Of course, a bad news for the U.S. is that although the U.S. national power has already stepped in, the new production base plan is scheduled to be put into operation in 2028, and there will be at least a two-year gap. How will the U.S. deal with it during this period? Moreover, there are many types of rare earths, and whether the U.S. can achieve complete self-sufficiency in various rare earth supplies is also a question. It is clear that the U.S., which is used to choking others' necks, has truly experienced the pain of being choked this time.
Original article: https://www.toutiao.com/article/1837315296224265/
Statement: This article represents the views of the author.