RARE EARTH ELEMENTS (REE)U.S. to Bolster Critical Mineral Supply Chain
The U.S. federal government and private sector are taking actions to bolster the supply chain for rare earths and other critical minerals used in technologies from household appliances and electronics to defense systems. These steps will reduce the U.S. dependence on China, a major producer of these elements.
The Biden administration announced actions taken by the federal government and private industry that it says will bolster the supply chain for rare earths and other critical minerals used in technologies from household appliances and electronics to defense systems. They say these steps will reduce the nation’s dependence on China, a major producer of these elements.
“China controls most of the global market in these minerals,” President Joe Biden said Tuesday from the White House. “We can’t build a future that’s made in America if we ourselves are dependent on China for the materials that power the products of today and tomorrow.”
The steps include a $35 million contract to MP Materials to process heavy rare earth elements at the company’s Mountain Pass, California, production site — the first processing and separation facility of its kind in the United States.
In 2020, the government awarded $9.6 million to the company, which owns the only American rare earths mine. The $35 million announcement Tuesday will complement the $700 million that MP Materials will invest by 2024 to create an American rare earth magnetics supply, said company CEO James Litinsky, who spoke virtually at the White House event.
Last June, following an executive order from Biden, the administration released a report on the supply chain, concluding an over-reliance on China for critical minerals. Currently, China controls 87% of the global permanent magnet market, as well as 55% of rare earths mining capacity and 85% of its refining.
What Beijing is holding right now is critical, said Phoebe Moon, a doctoral candidate at the University of California, Irvine, focusing on global supply chains and economic statecraft.
“We are using more hydro energy. We are using more climate and environmentally friendly energy sources,” Moon told VOA. “And the list of rare earth materials that the Biden administration announced that they will be targeting on this issue really has that in its heart.”
Rare Earths
Rare earths are 17 minerals that are not rare, just difficult and costly to mine and process cleanly. The U.S. is the second-biggest miner of rare earths, after China, according to the latest government data. Other top miners include Myanmar, Australia, Madagascar, India, Russia, Thailand, Vietnam and Brazil.
