The only rare earth mine in the United States has garnered interest from eager companies after China limited its exports of these minerals in response to tariffs imposed by Donald Trump. This situation has triggered an increase in the demand for rare earths in the country.
Matt Sloustcher, spokesperson for MP Materials, the company that operates the Mountain Pass mine in California, has noted that the repercussions of the trade war between the United States and China are being felt immediately. The scarcity of rare earths could become a critical issue if China prolongs its export controls aiming to gain advantages in future trade negotiations.
The White House and manufacturers consider it urgent to build more mines in the United States to decrease the country's dependence on China regarding rare earth elements. President Trump has explored various options to ensure the domestic supply of these minerals, including seeking agreements with Greenland and Ukraine.
Although rare earth elements are not truly "rare", finding and exploiting profitable deposits represents a significant challenge. Companies like NioCorp have been working on initiatives to establish new mines in the country, seeking funding and obtaining necessary licenses.
MP Materials, the owner of the Mountain Pass mine, has announced that it will stop shipping its ore to China for processing due to the restrictions and tariffs imposed by the Asian country. Despite the economic challenges this represents, the company aims to expand its processing capacity to continue operating in the market.
Despite increases in the prices of minerals like terbium, it is generally considered that there is currently enough global supply to meet the demand for rare earth elements. However, it is warned that shortages could arise later this year if restrictions in the international market continue.
China holds a dominant position in the rare earth market due to having the largest mines and processing capacity in the world. The recent restrictions imposed by the Asian country regarding the export of rare earths confirm its power in this sector. In response to this situation, companies and governments are seeking alternatives to ensure a stable supply and reduce dependence on China in this area.
