With the silent war between the United States and China, the tensions are inflamed. As a direct move made by China after President Donald Trump implemented tariffs on commercial relations with the asian country, the Chinese government limited the exports of the rare earth minerals, mostly used for military and high-tech devices. On its side, the US produces less than 5% of the rare earth minerals used, and depends on exportation to keep its reserves at an adequate level. A recent discovery made in one North American state may be a game-changer in this silent war, and here is everything we know about it.
This state has all the US needs to face China in this silent war
During the last few months, the world has been watching the trade war between the United States and China. With the Chinese response to US taxes, the world could face a critical shortage of rare earth elements, once China becomes the major exporter of these specific minerals.
Known for being raw material for components used in electric vehicles, magnets, smartphones, and even used in belic industry, the rare earth minerals are composed of 17 elements that are difficult to find in enough concentration or in the right condition to be mined. Due to their multiple uses, they are in demand by industries of various sectors that rely on the two largest economies in the world, which are also the two biggest producers of these minerals. Now, with the Chinese sanctions, the US does not even have the needed amount to supply its industries. But this discovery may change everything.
One state is prepared to overcome the odds during this trade war
While the US is getting prepared to face this trade war against China, one state is particularly ready for whatever may come next. In California, the Mountain Pass mine in California’s Mojave Desert has a plan to overcome this difficult moment faced by the international market.
According to Matt Sloustcher, a spokesperson for MP Materials, the company that runs the mine, the impacts on the market were immediate, but they already have a solution for it.
As said by Sloustcher, the MP Materials will stop sending its ore to be processed in China because of the export restrictions and a 125% tariff on U.S imports imposed by Beijing. To solve this question, the company will keep processing almost half of its mines and will store the rest.
Despite the mine producing almost every mineral needed by the market, it lacks two of the most important rare earth minerals used by electric vehicles. These minerals are on the list that are not being imported by China.
The power of China is enough to control the market
According to some sources, China has enough power to control the market for the rare earth minerals. It happens once the country has the biggest mines of these minerals, producing about 270,000 metric tons per year. In the US, at the same period, the total amount produced was 45,000 tons.
Due to its production, China supplies about 90% of the world’s rare earth minerals market, and also processes an equal amount. With the impact caused by the import restrictions, California’s mines may be a way for the U.S to overcome the difficult times.
California’s mine could help the US during this trade war
With the tension between the US and China rising, the market is seeking other options to supply the industry with rare earth minerals. During this process, mines such as the one found in California may be determining to keep the technological and military industries running without major compromises. At the same time, another discovery made in another US state may be about to set another chapter in this trade war, once a compose better than lithium was found in a mining site that is a unicorn of critical mineral deposits.