Where are the American mines?
Rare earth elements, often grouped with critical minerals, are crucial for various high-tech industries that the United States aims to bring back to domestic soil. However, the hurdles involved in doing so differ significantly between sectors, particularly in comparison to semiconductor manufacturing.
The complexity of producing advanced semiconductors, which demands significant investments in sophisticated machinery and the construction of intricate factories, greatly contrasts with the mining and refining of critical minerals. The technology necessary for these operations is well-established, and both the US and Canada possess substantial natural reserves of certain minerals. Nevertheless, the mining sector has largely diminished in the West due to its low economic yield and high environmental impact.
Previous attempts to bolster the critical minerals supply chain within the US have faced obstacles, primarily stemming from economic considerations rather than technical challenges. Lange notes that pursuing these ventures might seem less appealing, likening it to “bending down to pick up a nickel,” suggesting the potential reward does not justify the effort.
The market for critical minerals is characterized by volatility, as only small amounts are needed for production. Consequently, the entry of a new mining operation could lead to a drop in prices for the very minerals it seeks to extract and sell, according to Lange.
Should China effectively implement strict export controls, it may provide sufficient motivation for both the US government and private enterprises to focus on reshoring the mineral refinement sector. Lange anticipates that if such a shift occurs, establishing a new critical mineral operation in the US could take around two years.
“China has successfully maintained monopolies in a range of critical minerals for the past two decades,” Wang observes. “However, I believe we may be seeing signs of change, with China’s market dominance potentially reaching its peak while interest in these industries grows in regions like Northern Europe, Australia, Canada, the US, and Latin America.”
This story originally appeared on wired.com.
