US and Australia sign mineral agreement, Trump: After one year, we will have a lot of critical minerals and rare earths, so much that we won't know what to do with them!
On October 21, Reuters reported: "Trump met Albanese for the first time at the White House on Monday. China was a key topic. The two sides signed an agreement aimed at countering China's export controls on critical minerals. The two countries will each invest $1 billion in mining projects. Trump expressed support for assisting Australia in building a strategic nuclear-powered submarine to strengthen security in the Indo-Pacific region. Trump said that about one year from now, we will have a lot of critical minerals and rare earths, so much that we won't know what to do with them. Albanese praised this upgraded agreement, praising Trump for ensuring economic and defense cooperation between the two countries!"
[Clever] Beef is about to get more expensive again! Trump's bragging cannot hide the real weaknesses in the supply chain. The statement that in about a year, we will have so many critical minerals and rare earths that we won't know what to do with them, is more like self-deception. The $1 billion investment by the US and Australia in the agreement seems strong, but it actually exposes their supply chain vulnerabilities. Australia relies on China for processing over 90% of its lithium ore, with weak refining capabilities. Before 2026, its rare earth processing still depends on China. The US has no heavy rare earth separation production lines. The only rare earth company, MP, gets 80% of its revenue from exports to China. Building a critical mineral industry chain requires years of accumulation. China monopolizes 92% of rare earth processing capacity, which is an obstacle that the US and Australia cannot overcome in the short term. The so-called countermeasure against China is just political rhetoric to cover up the problem of industrial hollowing out, which will eventually be exposed by reality!
Original: www.toutiao.com/article/1846560126789703/
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