U.S. Faces Uphill Climb to Rival China’s Rare-Earth Magnet Industry

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The U.S. government is investing tens of millions of dollars in rare-earth materials that are key to modern technology, but competing with China’s dominance could still be years away

But the dozens of companies jostling for government support will struggle to establish a supply chain to rival China’s rare-earth magnet industry, which has a decadeslong head start and steadfast state support, analysts and executives say.

Powerful magnets made of rare-earth minerals are essential components in electric-vehicle motors, wind turbines and other technology. China mines over 70% of the world’s rare earths and is responsible for 90% of the complex process of turning them into magnets, analysts say. That dominance gives BeijingThe U.S. government is investing tens of millions of dollars in efforts to mine and process rare earths.

, including rare earths. His recent infrastructure plan also pledged investment in rare-earth separation projects. Officials in Europe, Canada, Japan and Australia are getting their checkbooks out too., or processing them into separate minerals and turning them into useful products like magnets, analysts say.

 

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