The Pentagon to Compete with the CCP over the Rare Earths Supply Chain

The Pentagon to Compete with the CCP over the Rare Earths Supply Chain.

It was reported on June 28th that the battle for controlling global rare earths supply chain is heating up. The U.S. Department of Defense has invested in new manufacturers to prevent the CCP’s stranglehold on key minerals.

The Pentagon agreed to fund a total of $120 million in a Heavy Rare Earths separation facility in Texas established by Australian Lynas Rare Earths Ltd, advancing a program launched in 2020.

Located in the Gulf coast region, the new plant will provide local essential rare earths needs, including the production of electric vehicles, wind turbines and electronics. A spokesman for Lynas Rare Earths said the Texas facility will be the largest rare earth production plant outside of Communist controlled China.

The plant’s heavy rare earth minerals come from Australian mines, completely bypassing China. Lynas Rare Earths plans for future purchases of equipment to produce light rare earths. Investment for this is a joint project by Lynas Rare Earths and the Department of Defense.

Rare earths have 17 elements and play a unique role in the production of modern technologies such as smartphones and jet engines. The United States has been engaged in the research, production, and development of rare earth minerals since World War II. China currently controls about half of the world’s rare earth minerals and 80-90% of global production.

In recent years, the United States has begun to get involved in the rare earth industry for national security reasons.