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US Scrambles as China Controls Vital Rare Earths
11 Feb
Summary
- Neodymium powers magnets crucial for US manufacturing.
- China processes 90% of rare earth minerals globally.
- No viable alternatives exist for neodymium magnets.
Neodymium, a critical rare earth mineral, is indispensable for the powerful permanent magnets found in countless everyday items and advanced technologies. Despite its widespread use, China holds a near-monopoly on its processing, handling 90% of the global capacity needed to refine the raw ore into usable components. This control poses a significant challenge for the United States, whose manufacturing sector, including automotive and aerospace industries, relies heavily on neodymium. The element's unique magnetic properties, such as maintaining magnetism under constant electrical current, make it difficult to replace in motors. Efforts by the US to establish domestic processing and strategic reserves are ongoing, but China's established advantages in scale and infrastructure mean it will likely maintain a dominant position in the rare earth market for the foreseeable future. Finding functional alternatives that match neodymium's performance and efficiency has proven elusive, highlighting the mineral's strategic importance.
