A newly opened rare earth mine in rural Brazil, supported by American investors, is a key player in addressing the U.S. reliance on Chinese rare earth metals crucial for technologies like electric vehicles and defense systems. The U.S. government has expressed interest in financing this mine's expansion amid China's control of rare earth processing, but it faces challenges as the mine's output is contractually tied to China, the primary processor of these metals. This situation underscores the West's disadvantage in securing essential materials for future industries and military needs.
China dominates the mining and processing of rare earths, a collection of 17 elements that are essential to the auto, semiconductor, aerospace and defense industries.
The Brazil mine lays bare that, when it comes to the minerals vital for tomorrow's economy and battlefields, the West is way behind and has few good options to catch up.
The mine is already contracted to sell its rare earths to China. They were the only customer who could process the product and separate the product.
Prescient planning by the Chinese over many, many decades has put them in a position where they have very strong control.
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