President Donald Trump said he would promote cooperation with Australia and Canada in. The purpose of supplying rare earth is to reduce its...
President Donald Trump said he would promote cooperation with Australia and Canada in. The purpose of supplying rare earth is to reduce its dependence on China. The United States has also negotiated rare earth mining projects in Africa.
Rare earth is a group of 17 important elements used in rocket systems, electric vehicles, computer monitors and other military and technological equipment.
Rare-earth minerals need to be processed after underground mining. Chinese enterprises currently account for about 85% of the global production of high-purity rare earth elements.
China has threatened to cut rare earth exports to the US. This is a challenge for the US to reduce the nation's dependence on China.
US President Donald Trump and Canadian Prime Minister Justin Trudeau discussed the need to secure an important supply of rare earths and minerals. This is a market currently dominated by China.
The two leaders talked about the issue during their last meeting, Trudeau said at a news conference on Monday. Canada has many rare earth minerals that are essential for modern technologies. A joint action plan was drafted by senior officials of the two countries. It will be presented to the political party that formed the government following the October 21 election, The Globe and Mail reported.
The joint plan is expected to include defense funding for important mineral projects and strategic investments in processing facilities in North America. According to The Globe and Mail. Senior Canadian officials have held meetings since July. The purpose is to discuss how the two countries ensure access to minerals including uranium, lithium, cesium and cobalt.
On May 2, US officials and operators discussed the issue at a closed meeting in Washington. Among the speakers was Tesla's global supply manager Sarah Maryssael. She said that the explosive demand of electric vehicles coupled with the lack of investment in mining could lead to the risk of the mineral shortage needed to produce rechargeable batteries for a few years.
About half of the world's electric cars are sold in China, and most of the components for rechargeable batteries are made there. This Asian nation controls about two-thirds of this industry. Bloomberg NEF is forecast to increase to about 73% by 2021. The US controls only about 13% of global lithium cell production capacity, with no expected growth, according to BNEF.
The US Department of Defense has also negotiated with the Australian government to own a rare earth mineral processing facility.
According to Ellen Lord, Defense Secretary of the US government, the government is currently looking for a few options to become partners in rare earth processing facilities. In particular, Australia's Lynas is a bright candidate. Lynas is the world's largest rare earth mining and processing company, after China. It accounts for about 15% of global rare earth production.
Reference from CNBC
Compiled and translated by Mr. Nerd
