American Rare Earth Minerals CEO: No need to compete with China on price, it's a foolish expectation

The Trump administration, which was "painfully hit" by Chinese rare earth regulations, hastily took action to revitalize domestic mineral supply, trying to reduce reliance on Chinese rare earth magnets, but this path seems not so easy.

Hong Kong English media South China Morning Post noted on August 4 that Chinese regulatory measures exposed the vulnerability of the United States in the rare earth supply chain. This change has completely changed the investment environment for related industries in the US, and a large amount of capital has started to flow into the rare earth industry, with increased government support as well.

But beneath the surface of all the positive signs, some US executives have admitted that China still firmly controls about 60% of global rare earth mining and 90% of refining capacity. Trying to compete with China on price, or even grabbing 100% of the market share, is just a "foolish expectation".

For Joshua Ballard, CEO of American Rare Earth Minerals (USARE), the trade conflict with China has completely changed everything. USARE was founded in 2019 with the goal of revitalizing the US rare earth magnet supply chain, but until a few months ago, the company had difficulty raising funds from Wall Street.

For decades, China has dominated the global rare earth industry. Chinese companies have established an unbeatable competitive advantage through lower costs and massive production capacity, making it difficult for USARE to attract investors' favor.

But with Trump returning to the White House, after China imposed rare earth regulations in response to US tariff actions, the vulnerability of the US rare earth supply chain became evident. Several major US companies warned that shortages of magnets could soon affect their production capacity.

At the same time, the US government has invested huge amounts of money to reduce dependence on key minerals from China, and capital is now pouring into the US mining industry.

Original: https://www.toutiao.com/article/1839522448451587/

Statement: The article represents the views of the author himself.