2024-05-07 16:15:47 ET
Summary
- China dominates the production and processing of rare earth materials, controlling mining, refining, oxide separation, and magnet production.
- Efforts to diversify rare earth sources outside of China have been limited, and there is a lack of sizable refineries for processing rare earth minerals.
- Lynas and other leading rare earth companies have exhibited negative growth in the past 1-year period.
- The demand for neodymium-praseodymium magnets, crucial for electric vehicles and renewable energy, is outpacing supply, highlighting the need for strategic investments and supply chain diversification.
As of 2024, the status of rare earth materials outside China remains a critical concern for global supply chains, particularly given China's dominance over the majority of the production and processing of these materials. China has come to control 67% of mining, 91% of refining activity, 87% of oxide separation and 94% of magnet production. This dominance has prompted significant international efforts to diversify sources of rare earths.
Lots of Talk, Little Action
The Rep. Obernoite bill presented to the U.S. Congress has been referred to the House Committee on Natural Resources, so we need to wait....
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For further details see:
Lynas: Rare Earth Mining Stocks Sinking Despite China Sabre Rattling And Congress Hyperbole