US to set up rare-earth factories to
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Rare earth, or "rare earth", has been a global issue since the Sino-US trade war erupted in 2019 as China is a rare earth producer and exporter. largest in the world As a result, the US government has to accelerate the development of its own rare-earth industry. To maintain stability and prevent the use of rare-earth as a means of negotiating Chinese power. Because rare-earth is an essential component of the technology industry of the future.
The Financial Times reported that the United States recently built a domestic rare-earth supply chain. By on the 14th of June. The US Department of Defense has signed a $120 million deal with Australian radar giant Lynas Rare Earths to build a processing plant. The first rare-earth in the US
The facility was built in an industrial area on the Texas Gulf Coast. It is expected to be operational by 2025 under a collective agreement. Linas will be an importer of heavy rare earths mined and refined from Australian mines. before being separated from the different components at a factory in the United States for commercial use
The new facility agreement is part of a pilot program launched by the US government in 2020 to build its own rare-earth supply chain. to support the needs of the domestic industrial sector Whether it is electric vehicles, wind turbines, fiber-optic cables and various electronic devices, including the manufacture of military equipment that require rare-earth components such as lasers and navigation systems.
In addition to this factory The United States also plans to support Linas in building another rare-earth plant in a California mine site. by Reuters reported that The investment is governed by the Defense Production Act, which allows the US government to invest in production to maintain national security.
According to the International Energy Organization (IEA), mines in China currently mine more than 50% of the world's rare earth. And China is also an importer of rare earths from different countries for processing and fragmenting up to 90%, as China is the only country with heavy rare earth processing plants at the moment.
