The US faces a severe shortage of rare earths, with China imposing export restrictions that make it nearly impossible for America to meet its own needs. Seven critical elements are restricted, which the US cannot produce or refine in sufficient quantities.
Luisa Moreno, president of Defense Metals Corp, warns that the near-term impact will be significant. The move is seen as a response to previous trade tensions, with China using export restrictions as leverage in negotiations.
The US has limited ability to address this shortage, leaving it vulnerable to Chinese demands at the negotiating table. This development highlights the complex nature of global supply chains and the need for strategic partnerships to secure critical resources.
Source: https://www.marketwatch.com/story/why-its-nearly-impossible-for-america-to-meet-its-rare-earth-needs-after-chinas-export-restrictions-2eb2cb56