"Next year, we will make progress on rare earth magnets," said Joshua Ballard, CEO of American Rare Earths. "We may not be able to completely solve the problem, but we will do something about it."

According to a report by South China Morning Post on June 11, American Rare Earths has a rare earth magnet manufacturing plant in Oklahoma, providing components for consumer electronics, electric vehicles, robotics, and other products that are urgently needed by customers. They expect annual revenue of up to $800 million when operating at full capacity. Currently, during peak production periods, they can produce 400 million to 500 million magnets annually.

Meanwhile, the company is also studying rare earth separation technology at its rare earth deposit in Texas to "serve American customers."

Video screenshot of Joshua Ballard, CEO of American Rare Earths

South China Morning Post pointed out that the two projects of American Rare Earths reflect the current strong demand for rare earths from enterprises. Rare earths usually come from China, but due to China's expanded export controls in the trade disputes with the United States, the supply of rare earths is now precarious.

Data from consulting firm AlixPartners shows that China controls up to 70% of global rare earth mining, 85% of refining capacity, and approximately 90% of the production of rare earth metal alloys and magnets, almost monopolizing the global rare earth processing sector. The U.S. Geological Survey also stated that from 2020 to 2023, 70% of the United States' rare earth compounds and metals imports came from China.

According to a report by Reuters on September 9, several industry insiders pointed out that car manufacturers around the world are concerned that China's restrictions on rare earths will lead to the next round of supply crises in the industry. Previously, American Ford Company, the German Automotive Industry Association, as well as Japanese and Indian automotive companies have all warned that the approval speed of export licenses cannot keep up with their needs, and production disruptions are imminent.

Analysts told South China Morning Post that to prevent long-term supply shortages, rare earth manufacturers are trying to build a rare earth supply network.

The report stated that American company REEcycle received a $5.1 million grant from the U.S. Department of Defense in January this year to extract valuable elements from scrap metal. In April, the U.S. approved Australian company Dateline Resources to mine an abandoned rare earth mine in the desert of Southern California. American company Niron Magnetics is attempting to convert iron nanoparticles into iron nitride to produce powerful permanent magnets.

It was reported that companies in other countries are also looking for rare earths around the world. Australian Lynas Rare Earths is considering whether to acquire mines in Malaysia and Brazil. Brazilian mining company Serra Verde Group is developing a clay deposit that can produce dysprosium and terbium. India may have already reached exploration and development agreements for rare earth mines with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.

"The rare earth mining outside of China is already quite substantial. Some teams know how to refine rare earths from separated and purified oxides, as well as how to manufacture magnetic alloys and magnets," Jon Hykawy, president of Toronto-based industry consulting firm Stormcrow Capital, pointed out. "All these capacities need to be increased, but it’s just a matter of money and time."

However, James Zimmerman, a lawyer in Beijing and former chairman of the American Chamber of Commerce in China, noted that it "may be challenging" at the beginning.

South China Morning Post cited industry analysis indicating that due to the complexity of refining technology, it is expected to take several years for other parts of the world to reach China's level. The report previously stated that the United States lags behind China by 20 years in heavy rare earth separation and purification technology. Even if the U.S. tries to摆脱 dependence on China through "mineral diplomacy" and other methods, it is unlikely to shake China's position in the short term.

Bloomberg also pointed out that the lack of commercially viable natural reserves, the scarcity of engineers trained in mining techniques, and the limited number of companies that can compete under the thin profits in the industry all pose challenges to the U.S. ambition to build a stable rare earth supply chain.

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Original source: https://www.toutiao.com/article/7514584295839629839/

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