The U.S. Cannot Get Rid of Its Dependence on China’s Rare Earth Magnets

Perhaps the United States is prepared for the interruption of the supply of strategic resources in rare earth mines, but it still cannot get rid of its dependence on China’s rare-earth magnets. Citigroup’s recent report pointed out that nearly two-thirds of the US’s magnet supply comes from China, and industries other than US defense “have no ready-made ways” to get rid of its dependence on China’s rare earth supply.

Citigroup’s report pointed out that China’s total magnet exports last year reached 1.7 billion U.S. dollars (about 11.78 billion yuan), of which U.S. imports of about 395 million U.S. dollars, 257 million U.S. dollars came from mainland China. Citi Metal analysts said that if the ban extends to processed rare earth products, especially magnets and motors, or prohibits transshipment to third countries, it will have a serious impact.

According to the report, if China only imposes restrictions on the export of rare earth metals and rare earth alloys to the United States, and the processing capacity outside China is rapidly built, the United States can still cope. However, if the scope of restrictions is extended to manufactured products such as magnets and permanent magnet motors, the situation will be much more serious, and certain special industries in the United States may therefore fall into the dilemma of supply interruption.

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