Daily Management Review

United States is looking for rare earth metals suppliers outside of China


Against the background of reports on the possible restriction of the export of rare earth metals from China, the US Department of Defense is negotiating with other manufacturers.

pixel2013 (Silvia & Frank)
pixel2013 (Silvia & Frank)
The United States, against the background of a trade conflict with China, is looking for alternative suppliers of rare earth metals. The Washington Department of Defense has already begun negotiations with Mkango Resources from the African state of Malawi, as well as with firms in other countries. This was reported by an employee of the logistics department of the Pentagon, reports Reuters.

“We are looking for any other source outside of China,” he explained, noting that the United States needs at least two producers of rare earth metals.

Rare earth metals are used in the manufacture of electronics, automobiles, and military products. China controls one-third of the world's reserves of such metals and owns 80 percent of the processing plants in the world.

Currently, most of the rare earth metals used in the US (80%) comes from China. In late May, the state-run Chinese media wrote about a possible export restriction. In 2010, Beijing has already resorted to such a penalty in a diplomatic conflict with Tokyo. 

Earlier, Washington imposed higher duties on Chinese goods worth $ 200 billion, after which China imposed US $ 60 billion in US customs duties.

source: reuters.com