In a bid to reduce China’s dominance in the global rare earth minerals market, a new plant is set to be built near Houston by Lynas Rare Earths Ltd. However, China’s control of over 70% of output and 90% of refining means this goal may be hard to achieve.
Despite billions in subsidies and loans, the slump in prices is casting doubt on the viability of such projects in the US and its allies. The Texas plant, backed by over $300 million in Pentagon contracts, hopes to be operational within two years.
James Litinsky, CEO of MP Materials Corp., voices concerns about the impact of market conditions on rare earth projects. The US is striving to develop a supply chain capable of rivaling Chinese firms, but challenges persist.
This blog highlights the challenges faced by the US in competing with China’s dominance in rare earth minerals production. Despite significant investments and upcoming plants, market conditions and China’s stronghold pose obstacles to achieving this goal. James Litinsky’s comments underscore the uncertainties surrounding these projects. Stay tuned to see how the US navigates these hurdles in the global rare earths market.
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