A single US rare earths mine faces increased pressure as Chinese export limits on critical minerals take effect, sparking a rush to build new mines and expand existing ones.
The Mountain Pass mine in California’s Mojave Desert is America’s only operational rare earths mine, producing neodymium and praseodymium – crucial components for electric vehicles, wind turbines, and advanced fighter jets. With Chinese export controls limiting the supply of heavy rare earths like terbium and dysprosium, US companies are racing to expand their processing capabilities.
Tariffs imposed by China on US imports of these minerals have sparked a price surge, with prices jumping 24% for terbium since March. Companies like MP Materials, which acquired the idle Mountain Pass site in 2017, are adapting by reducing exports to China and investing in domestic production.
Experts warn that a shortage of rare earth elements could occur if China maintains its export controls or expands them in trade negotiations. However, global supply chains suggest that manufacturers may absorb price increases without raising vehicle prices initially.
US companies like NioCorp and U.S. Critical Materials are working to build new mines and expand existing ones, aiming to reduce reliance on China for these critical minerals. Trump’s executive orders aim to streamline permit approvals and encourage investments in domestic production.
As the US scrambles to meet its rare earths needs, manufacturers prepare for potential price increases, and automakers consider absorbing costs without raising vehicle prices initially. The rush to build new mines and expand existing ones marks a significant shift towards domestic production of critical minerals.
Source: https://apnews.com/article/rare-earths-trump-tariffs-china-trade-war-effd6a7ec64b5830df9d3c76ab9b607a