Perspective: Rare earthsU.S. and Australia Team Up against China's Dominance in Rare Earths
An Australian rare-earth producer has enlisted an American partner to help it chip away at China’s dominance in supplying minerals that are crucial to making smartphones, missiles, batteries for electric vehicles and a long list of high-tech products. China has used its rare-earth dominance as a weapon in previous trade disputes and has signaled that it could do so again in its current fight with the U.S.
An Australian rare-earth producer has enlisted an American partner to help it chip away at China’s dominance in supplying minerals that are crucial to making smartphones, missiles, batteries for electric vehicles and a long list of high-tech products.
Lynas, the world’s only major rare-earth producer outside China, has signed a deal with Texas-based Blue Line to set up a separation facility in the U.S. Operations could begin in 2021.
Fumi Matsumoto writes in Nikkei Asian Review that Chinese players account for 85% of the global production of high-purity rare-earth elements; Lynas produces the remaining 15%.
“In fact, the only heavy rare earth separating plants in the world are located in China,” Lynas CEO Amanda Lacaze said in an interview with Nikkei. “But heavy rare earths are essential.”
Japan is also expanding its cooperation with Lynas, thus creating a three-nation alliance in the sector that parallels the Asia-Pacific region’s security landscape, where the U.S., Japan and Australia are allied to confront China’s military expansion, an industry source noted.
China has used its rare-earth dominance as a weapon in previous trade disputes and has signaled that it could do so again in its current fight with the U.S.
