U.S. Risks ‘Devastating’ Blow From China’s Rare Earths Monopoly
- Beijing could wreak havoc by restricting exports of magnets
- Even sole U.S. mine sends elements to China for processing
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Beijing’s threat to use its dominance of rare earths in the trade war risks serious disruption to U.S. industry, by starving manufacturers of components commonplace in everything from cars to dishwashers and military equipment. And, it’s a stranglehold that might take years to break.
China could wreak maximum havoc by squeezing supplies of the magnets and motors that use the elements, said Jack Lifton, co-founder of Technology Metals Research LLC, who’s been involved with rare earths since 1962. The impact on American industry could be “devastating,” he said from Michigan.