RT.com
14 Jan 2022, 23:42 GMT+10
Washington is seeking to thwart China's near control over the sector
A bipartisan piece of legislation to be introduced in the US Senate on Friday would force defense contractors to stop buying rare earth minerals from China by 2026, Reuters reports.
The bill will also require the use of the Pentagon to create a permanent stockpile of the strategic minerals. It essentially uses the Pentagon's purchase of billions of dollars-worth of fighter jets, missiles and other weapons as leverage to require contractors to stop using Chinese rare earths and thus support revival of domestic output. Waivers are allowed only in rare situations.
Rare-earth metals - a group of 17 elements that are critical for a wide range of industries from consumer electronics to military hardware - have long been at the center of the US-China trade war. The US used to be the world's number-one producer of those minerals, but is now heavily dependent on Chinese exports.
The United States currently has only one rare-earths mine and has no capability to process the minerals. Meanwhile, China accounts for around 80% of global rare-earth production and holds the largest reserves.
"Ending American dependence on China for rare earths extraction and processing is critical to building up the US defense and technology sectors," Senator Tom Cotton, an Arkansas Republican, told Reuters.
He has described China's evolution into global rare-earths leader as "simply a policy choice that the United States made," adding that he hoped fresh policies would loosen Beijing's grip.
To build its reserves the Pentagon buys supply in part from China, but the new requirements "should encourage more domestic (rare earths) development in our country," Cotton explained.
In the past two years, the Pentagon has given grants to companies trying to resume US rare-earth processing and magnet production.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Michigan Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Michigan Sun.
More InformationNEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
LONDON/STOCKHOLM: The Persson family is ramping up its investment in the H&M fashion empire, fueling renewed speculation about a potential...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...