Rare Earths
Playing the tough guy, Tr_mp goes around China to Australia for Rare Earths. China has the largest known estimated reserve of 44 million metric tons. It also holds the leading position in rare earth production, producing 270,000 metric tons in 2024. Both Australia and the United States are second in reserves. The last time I looked at this, I believe Australia was more expensive. It also does not have reserves of all rare earths.
Trump has been more interested in tariffing China on the rest of its products. China has been retaliating by threatening the US by withholding rare earths as the bargaining chip. Rather than practicing his art of the deal, Tr_mp has been stomping around about China. China and other Asian countries will not tolerate such bravado and threats.
Can Australia provide US with rare-earth metals which China has restricted? | Business and Economy News, Al Jazeera
Australia may have spotted a lucrative hole in the market for rare-earth metals, which are crucial for the defense industry and for manufacturing products necessary for the development of artificial intelligence (AI), such as semiconductors.
Last week, China, which has a stranglehold on the supply of these critical minerals, tightened its export controls over its rare-earth metals. It now restricts exports of 12 of the 17 rare-earth metals on the periodic table. Seventy percent of rare earths are mined in China, and 90 percent are processed there.
What China has added to the mix is asking what the rare earths will be used for so as to restrict the United States even more. It isn’t that the US does not have rare earths, it does. The US produces fewer rare earth minerals primarily due to higher production costs, significant environmental and regulatory hurdles. China has improved its processing capabilities and can undercut the US in production. By far if this is the issue(s), then US should improve its processes or bite the bullet with China. Australia rare earths will not be cheap.
Meanwhile Tr_mp is playing the tough guy.
Additional Information: Problematic Rare Earths – Angry Bear
The art of the deal seems to be about being a sucker. Looking tough is apparently more important than getting a good deal.
Kaleberg:
It is all about putting one over on the one at the other side of the table. An example might be . . . lower taxes and more debt. No worries, the next generation will pay for it.