The West cannot alter the Chinese-dominated rare-earth supply chain

    On July 27, Australian rare earth giant Linus Mining Announced a contract with the U.S. Department of Defense to begin preliminary design work for a large rare earth separation plant in Texas, expected to be completed in the first half of 2021.The initial phase of the design and planning could cost about $30 million.

    The financial push for the rare-earth industry comes after the U.S. government ordered in 2017 to reduce its dependence on imports of key minerals needed for products including missile systems, electric vehicles and consumer technology.China accounts for about 80 per cent of us rare earth imports, according to the US Geological Survey.

    Currently, there are no rare earth processing plants in the US, and the development of three new projects, including the Linus rare earth plant, will add about 10,000 tons of processing capacity.Although this is less than America's total needs, it is enough to meet the country's military needs.The relative decline in us defence technology leadership has coincided with the decline in rare earth capabilities.

    In fact, the United States, Australia and the European Union are trying to break out of China's rare earth supply chain.The European Commission is working on a new raw materials strategy, including one aimed at reducing European industry's dependence on Chinese supplies of raw materials, including rare-earth metals.

    In November 2019, Australia and the United States signed a cooperation agreement between their geology departments to bypass China and secure access to key minerals.The choice of Australia as a partner is no accident - Australia is the second-largest supplier of rare earths after China.

    It is clear that the US, Australia and the EU intend to establish a rare earth supply chain independent of China.We even wonder if the West is dreaming, because it has never occurred to them that China is the world's leading producer of rare earths and is at the top of the global supply chain.For the time being, the US, Australia and the EU are in no position to supplant China in global supply chains.

Crucially, China's vast and well-established rare-earth supply chain makes it easier for producers to obtain the raw materials they need to produce at a lower time or cost of capital, and any move abroad or back home inevitably leaves them with the difficult task of rebalancing the supply chain.

    The biggest advantage of China's rare earth industry lies in the advanced separation and purification technology, high efficiency and low cost.With this advantage, China provides 90% of the world's rare earth production with 30% of its rare earth resources.Meanwhile, China has filed more rare earth patents each year since 2011 than the rest of the world combined.

    Besides, rare earth has been listed in the resources development and utilization of China's most important strategic category, at least for the time being compared with the United States, Australia and the European Union, China's rare earth reserves are more abundant, and since the early 1970 s development of rare earth separation and purification technology, has been in the leading position in the world, if Australia and the European Union to set up new rare earth supply chain, the cost of production couldn't compared with China.

    After that, China will also expand the advantages of rare earth supply chain in the world market.Industry experts say future directed energy weapons, which require heavy rare earths and advanced materials science capabilities, will rewrite or control the game.China's control of the West's access to these rare earth materials gives it an edge in the field, which means it will eventually lead the world in the development and deployment of advanced weapons, including targeted weapons.