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Back in 2009, Jim Kennedy, a consultant and rare earth entrepreneur, found himself face-to-face with a Pentagon official who couldn’t care less about the future of rare earth elements. His apathetic demeanor was a punch to the gut for Kennedy.
Fast forward to today, and that indifference has vanished like a fart in the wind. Rare earths, those shiny metals that are absolutely essential for everything from smartphones to missiles, are now at the center of a geopolitical tug-of-war.
Who knew that a bunch of metals could stir such a cocktail of greed and desperation?
The rise of rare earths as a political hot potato
So, what’s the deal with rare earths? They’re not just some trendy accessory; they’re the backbone of modern technology.
From electric vehicles to military jets, these elements are indispensable. Melissa Sanderson, a former president at American Rare Earths, puts it bluntly: they’re crucial for both economic growth and national security. And guess who’s got the monopoly? That’s right, China.
In a stunning twist, 70% of America’s rare earth imports come from the Dragon itself, soaring to a staggering 80% last year. Talk about a one-sided relationship! It’s like relying on an ex who only brings chaos into your life.
China’s chokehold on rare earths
Let’s not sugarcoat it: America’s been playing a dangerous game. With Yttrium, a rare earth element critical for everything from TVs to cancer treatment, the US is 100% dependent on China. And guess what? China has the export licenses on a tight leash.
They’ve been known to yank them whenever they feel like flexing their muscles, creating a climate of fear and uncertainty. Remember when Trump had that rare phone call with Xi Jinping? It was like a scene from a bad movie, and the next day, China casually dropped some export licenses, as if to say, ‘Here you go, but don’t get too comfortable.’
America’s lost crown in rare earth production
Once upon a time, the US was the king of rare earth production. Kennedy’s company, MP Materials, was more than capable of satisfying the meager demand back in the day. But that reign crumbled to dust in 1980 when regulations tightened, forcing the US to take a backseat while China danced its way to dominance. The irony? China embraced the environmental horrors of rare earth processing while the US stood by, wringing its hands over radioactive waste. And now, here we are, trying to play catch-up with a monopoly that’s weaponized its market power. Who’s the real winner here? Spoiler alert: It’s not America.
Trade wars and the scramble for resources
Trump’s tariffs? They’ve been blamed for the escalating tensions, but Kennedy argues they’ve forced China to show its cards. If left unchecked, this could lead to a catastrophic scenario where the non-Chinese world would crash and burn, scrambling to re-engineer every product that rolls off an assembly line. How delightful! And let’s not forget Greenland, which is sitting on a quarter of the world’s rare earth minerals. Trump’s bright idea? Annex the place. Because why not add a little more chaos to the mix?
Mining the depths of the ocean
With the stakes so high, the US is even eyeing the ocean floor. Enter the Clarion Clipperton Zone, a vast underwater area rich in polymetallic nodules. It’s like a treasure chest just waiting to be opened, but with a side of environmental disaster. Critics argue that mining the ocean would be an ecological nightmare. Meanwhile, companies are racing to get the first commercial licenses. It’s a classic case of corporate greed versus environmental sanity, and you can guess who’s winning.
Allies and the future of rare earths
If America wants to crawl out of this mess, cooperation with allies like Canada and Australia is vital. They’ve got the resources and the expertise that the US desperately needs. But, as Sanderson points out, the US regulatory system is a hot mess, with companies waiting years just to get the green light to start production. Meanwhile, other countries are cashing in, and America is left holding the bag.
Hope on the horizon?
Despite the bleak outlook, Kennedy remains hopeful. His company is working to transform a former iron ore mine in Missouri into a rare earth powerhouse. The future is uncertain, but one thing’s for sure: without significant action, America risks becoming a mere spectator in the race for rare earth supremacy. The ball is now in Trump’s court. Will he step up, or will this slow-motion train wreck keep rolling on?
