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 Manufacturing Mirror 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 Manufacturing Mirror.
More InformationTel Aviv [Israel], July 3 (ANI/TPS): The government of Israel approved the implementation of what it called a broad compensation plan...
The National Assembly has passed a bill targeting the utility that belongs to Samvel Karapetyan The Armenian National Assembly has...
Tel Aviv [Israel], July 3 (ANI/TPS): The government of Israel approved the implementation of what it called a broad compensation plan...
Shillong (Meghalaya) [India], July 2 (ANI): In connection with the murder of businessman Raja Raghuvanshi, who was killed in Meghalaya...
Meerut (Uttar Pradesh) [India], July 2 (ANI): The Meerut district administration has taken steps to ensure that Kanwariyas, devotees...
Norilsk Nickels owner Vladimir Potanin and many others saw massive gains The combined net worth of Russia's wealthiest businessmen...
WASHINGTON, DC - U.S. President Donald Trump on Tuesday claimed Elon Musk's success has been built on government subsidies. Without...
New Delhi [India], July 23 (ANI): In an order on defence procurement, the Delhi High Court has upheld the Central Reserve Police Force's...
New Delhi [India], July 2 (ANI): Lok Sabha Speaker Om Birla will inaugurate the National Level Conference of Chairpersons of Urban...
BEIJING, July 2 (Xinhua) -- As the Communist Party of China (CPC) celebrates the 104th anniversary of its founding this week, the Party's...
* Indonesia is currently the world's largest producer of nickel and holds the biggest-known reserves of the metal, an essential component...
New Delhi [India], July 2 (ANI): The Aam Aadmi Party (AAP) on Wednesday slammed the Delhi BJP government for its 'Tughlaqi' order,...