In the ongoing trade war between the United States and China, rare earths, a group of metals crucial to various industries, have become a focal point. China, which controls nearly 70 percent of the global rare earth market, is now moving to further restrict exports, potentially leading to disastrous consequences for American manufacturing and military power.
Rare earths, which include 17 types of metals, are used in a wide range of products such as semiconductors, electric vehicles, wind turbines, and LED lights. The United States, with just one operational rare earths mine, once dominated the market in the 1980s but has since seen its production decline significantly.
China’s control over rare earth mining and exporting has given it significant leverage in the trade war, with the government acquiring the largest local miners and consolidating control over the industry. The United States and other countries reliant on rare earth imports may face shortages that could impact sectors like automotive manufacturing, tech production, and military equipment.
The Trump administration has explored various options to secure rare earth supplies, including brokering deals with mineral-rich countries like Ukraine and considering the acquisition of Greenland. However, the long-term impact of China’s restrictions on rare earths remains uncertain, with American companies stockpiling supplies but unsure of how long those reserves will last if China limits exports.
Ultimately, the global supply chain for rare earths is at risk of disruption, highlighting the importance of diversifying sources of these critical metals to prevent geopolitical conflicts from affecting key industries worldwide.
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