Explainer: U.S. dependence on China's rare earth: Trade war vulnerability 11:15am EDT [Reuters]
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Explainer: U.S. dependence on China's rare earth: Trade war vulnerability - Reuters 6 Min Read (Reuters) - Rare earth elements are used in a wide range of consumer products, from iPhones to electric car motors, as well as military jet engines, satellites and lasers. Rising tensions between the United States and China have sparked concerns that Beijing could use its dominant position as a supplier of rare earths for leverage in the trade war between the two global economic powers. China supplied 80% of the rare earths imported by the United States from 2014 to 2017. China is home to at least 85% of the world’s capacity to process rare earth ores into material manufacturers can use, according to research firm Adamas Intelligence. It would take years to build enough processing plants to match China’s processing capacity of 220,000 tonnes - which is five times the combined capacity of the rest of the world. Alternative processing plants would struggle to compete with China’s low costs in
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