business website Quartz reported that MP Materials, the once the world's largest rare earth producer in the United States, is making a comeback and plans to go public on the New York Stock Exchange to raise funds. The company's established mission is to restore the United States' complete rare earth supply chain and reduce its dependence on China.
Currently, China is the undisputed leader in the global rare earth industry.
reported that the United States once had the world’s largest rare earth industry chain, but lost to China in the competition at the end of the last century. MP Materials had to be closed in 2002. The owner declared bankruptcy in 2015. After reorganization, it is slowly Starting operations and listing on the New York Stock Exchange was a key step they took.
As we all know, rare earths are known as the "lubricants" of modern technology, which have a significant impact on emerging technologies and cutting-edge military technology. The most vivid sentence is that if there are no rare earths, the Lockheed Martin military factory in the United States will have to stop. Produce F-35 stealth fighter.
What made the United States fall behind in the rare earth industry to be "stuck" by China?
The overlord of the rare earth industry of the last century has fallen to the present level, not just short-sighted. In the last century, the importance of rare earths did not have such a huge effect as seen today, and the United States has huge rare earth reserves. They believe that even if the industrial chain moves outside the United States, it will not pose a fatal threat to the United States. Another factor of
is that in the process of refining rare earth mining, the technical capabilities of American companies have not improved, and it is an indisputable fact that their competitiveness has been declining. In the gradual formation of the global trade industry chain, Americans have completely abandoned this piece of expand. In the end, the Americans lost control of such important strategic resources.
In addition, another episode is that when the domestic rare earth industry chain collapses, the Americans hope to join hands with Japan and Europe to use capital to control China's rare earth industry. In fact, the American strategy was successful before 2010. Even if China was the world’s largest supplier of rare earth products, the pricing power was firmly in the hands of Europe, America and Japan. Sell rare earth materials cheaply.
However, after China strengthened its management of strategic resources, the use of capital by Europe, America and Japan to control China's rare earth industry has also ended. Rare earth has finally become a trump card in China's hands.
U.S. rare earth miners are making a comeback. Can they really alleviate America’s dependence on China in this field?
In fact, since the United States realized the strategic importance of rare earths five years ago, it began to study and restore the US rare earth industry chain. But this road is not easy. According to the research results of the US military department, it will take 15 years for the United States to restore the rare earth industry chain. This is based on the fact that China does not "stuck the neck" of the rare earth industry technology.
Speaking of rare earth industry technology, this piece of China is the number one in the world, and it is also the result of accumulation in the past decades. If China implements a blockade of this technology, it may take longer for the Americans to find a new way to develop a new technological route. It can be said that even if the United States rebuilds its rare earth industry, it will rely on rare earth products outside the United States for a long time. The current strategy of the Americans is to support Australian rare earth traders to the greatest extent and increase production to meet American demand.
Behind the U.S. rare earth dealers, Chinese companies show that after
MP's bankruptcy and reorganization in 2015, people discovered that a Chinese company appeared in the company's equity structure. The analysis pointed out that the reason for the emergence of Chinese companies is because MP company wants to use Chinese technology to rebuild the US rare earth industry.
However, the Americans may have their abacus in the wrong direction. According to the "Catalogue of Export Prohibited and Restricted Technologies" released by the Ministry of Commerce and the Ministry of Science and Technology in August 2020, rare earth industry technology will inevitably become a technology category for which exports are prohibited. Five years ago, perhaps the export of related technologies would be approved, but under the current situation, it is almost impossible.
In recent years, Americans have always come up with news about rebuilding the rare earth industry in a short period of time, but there is no news after that. It can be seen that they are indeed a little anxious, but there are not many ways to do it. That's it. (Master of Feng Wen)
