U.S. Must Build Alternative Rare Earth Supply Chain

China’s ban on exports of rare earths to Japan in 2010 created the best scenario for Tokyo’s developing its own rare earth supply chain, giving the middle finger to Beijing as the US starts establishing the same kind of supply chain, journalist Joseph Rachman reported for Foreign Policy.

Photo Insert: A rare earth mine in California.

In September 2010, industrial nations panicked, realizing that China produced 97% of rare-earth oxides and had near monopoly control of the rest of the supply chain.

Japan made sure that it had neodymium, praseodymium, dysprosium and terbium. It partnered with Lynas Rare Earths, an Australian firm headed by CEO Amanda Lacaze. The US launched legal action via the World Trade Organization (WTO), and the European Union (EU) set up a group to study rare-earth supply chains.

“So, guess who actually has secure supply chains today?” Lacaze said. Japan’s supply chain for these rare earths effectively is Lynas.

Reading from Benchmark Minerals’ latest research, rare earths expert Daan de Jonge listed current and projected figures for China’s rare-earth production: For neodymium and praseodymium, China is currently responsible for 89% of processing; by 2028, it is expected to process 75%.

As for dysprosium, China currently processes 99%; by 2028, that number is expected to reduce a mere 5 points—to 94%.

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