U.S. Acts to Secure Rare Earth Supply as China Restricts Exports
Prices for dysprosium and terbium have surged due to Chinese export restrictions. The U.S. Department of Defense has taken steps to secure domestic rare earth production, as China controls over 69% of global supply and 90% of processing capacity.
In July 2020, American Rare Earths inked a deal with the U.S. DoD to boost domestic production. Recently, the Pentagon invested in MP Materials, the largest U.S. rare earth miner, to shield against Chinese disruptions. China's export curbs on over a dozen rare earths have caused price volatility and supply chain concerns.
Meanwhile, the State Department is collaborating with allies like Australia, India, and Japan to find alternative sources. The Trump administration also proposed an equity stake in Lithium Americas, a Canadian company operating U.S. mines. Chinese rare earth companies have seen record profits and stock price increases due to the price rebound. The U.S. DoD awarded a $245 million contract to the United States Antimony Corporation for antimony supply. Energy Fuels successfully produced high-quality dysprosium oxide, used in wind turbines and electric vehicles.
With dysprosium and terbium prices soaring, the U.S. is actively working to secure its rare earth supply chain. The DoD's investments and the State Department's international efforts aim to reduce dependence on Chinese exports and ensure a stable supply for both civilian and military needs.
