According to an internal report, the Pentagon has investigated US mining companies for their rare earth mining capacity. This came after Beijing signaled that it wanted to restrict exports of rare earth metals in the trade war with Washington.

The US military has asked mining companies to develop plans to develop domestic rare earth mines and processing plants. This emerges from an exclusive report citing a US government document. At the same time, the Pentagon is said to have asked US companies to name their needs for rare earths.

The Pentagon expects a quick response from the manufacturers and gave them time to submit figures by the end of July. After reviewing the replies, the Authority is reported to be able to provide financial support to vital industries.
Read more: Another move in the trade war: China creates new trade regulations for rare earths

The urgency with which the Pentagon approaches the matter is understandable, as the US relies on the import of Rare Earths from China. The seventeen elements from the rare earth group are used in most high-tech devices. In particular, the military needs them for the production of electronic components for its complete product range.

Once the US was one of the largest producers of rare earths, but have long since given up this status. Now it could take years to push China out of its leading position in the market. While China has 30 percent of total global reserves, it produces more than 80 percent of the global supply and about 80 percent of the rare earth metals used in the US between 2014 to 2017 originated in China.

As trade tensions between the two largest economies continue to escalate, Chinese state media have fueled fears that Beijing may play the rare earth map to defend itself against US pressure. As early as May, China had reduced its exports of minerals, while stocks at mining companies skyrocketed due to fears of further sanctions.

Source: Reuters

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