The US may invest in boosting the domestic rare earth supply chain.

VTV.vn - The Trump administration may invest in building a domestic rare earth supply chain as China tightens export regulations.

The US wants to invest in a domestic rare earth mining chain. Illustration photo: AFP/TTXVN

The US government is considering investing in developing a domestic rare earth supply chain, as China continues to tighten controls on exports of this commodity, according to CNBC.

Shares of many rare earth and mineral mining companies in the US jumped in the last session, immediately after the news that China was tightening exports, showing increasing expectations that the White House will take strong action to self-sufficiently supply rare earths domestically.

CNBC reported on October 9, citing the Chinese Ministry of Commerce, that Beijing now requires foreign entities to apply for export licenses for products containing rare earths that account for 0.1 percent or more of the value of the goods. Companies will also need export licenses if they use Chinese magnet mining, refining, or recycling technology.

“The White House and relevant agencies are carefully assessing the implications of these new regulations, which were issued without prior notice and appear to be aimed at controlling the entire global technology supply chain,” an administration official told CNBC.

In July, the US Department of Defense signed an agreement to take a stake in MP Materials, the largest rare earth company in the US, and US officials have since signed additional agreements to take stakes in several other mineral companies.

Currently, the US is still mainly dependent on rare earth imports from China - the country that accounts for more than 90% of the global supply of this item.

Source: https://vtv.vn/my-co-the-dau-tu-thuc-day-chuoi-cung-ung-dat-hiem-noi-dia-100251010170205565.htm