Beijing’s imposition of rare earth export restrictions from April – playing its trump card in the face of Washington’s intensifying tariffs and tech curbs – helped send a message to Washington ahead of this week’s discussions over bilateral export-control issues.
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Considered a trump card because rare earths have an outsized impact on auto, electronics and defence industries, and China dominates the supply chain, the trade in such critical minerals is widely expected to be among the key topics this week in discussions between high-ranking US officials and Chinese Vice-Premier He Lifeng in London.
Despite Beijing having pledged to accelerate export approvals, China’s grip on the industry has amplified the question of whether Washington and its allies should do more to build an industrial chain outside of China, and at what cost.
“We’ll start making a dent next year on the magnet side,” USA Rare Earth CEO Joshua Ballard said. “We’re not going to be the full answer, but we’re going to make a dent.”
USA Rare Earth runs a magnet-making plant in the US state of Oklahoma, where it expects annual revenue of up to US$800 million, at full capacity, from clients eager for components that build consumer electronics, electric vehicles and robotics.
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The same company is currently working on separation technology for its rare earth deposit in the neighbouring state of Texas, again serving eager American clients.