China’s grip on rare earth supply has Trump over a barrel, for now
The country has built up its capacity for both mining and refining rare earths over decades
THE Trump administration’s trade war with China is not going according to its script. After all the bluster of previous months, it was becoming clear that Beijing’s trump card (pun intended) was its hold on rare earth minerals.
Last week, the US revoked export controls imposed on American firms supplying chip-design software to customers in China. In return, Beijing agreed to ease restrictions on the export of rare earth products. China supplies around 70 per cent of that market. Rare earth elements are a group of 17 metals that are essential for making everything from smartphones and LED bulbs to electric vehicle motors, wind turbines and military hardware.
To be sure, Washington is not sitting still. The US’s sole indigenous rare earth supply comes from the Mountain Pass mine in California, which is the also largest producer of rare earths in the western hemisphere. On Jul 11, US Energy Secretary Chris Wright is expected to attend the opening of another rare earth mine in Wyoming. More on the way.
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