In WWII the Japanese seized the rubber plantations that supplied the base material for seals and tires. The technology to replace rubber was known but there was no incentive to use it as long as rubber was available. The same is probably true of “rare earths.” As long as China is holding down the price there was no way anyone would build a processing facility that couldn’t beat the Chinese price. Also, if such a facility did come online, the Chinese would subsidize the price further until that company went out of business. Building the new facility needed to become a national priority. Thank you, Chairman Xi.
Exactly, “Rare Earths” are not that rare, and US uset to dominate that market.
But Chinese, drove all competition out of market.
They did it again and again. When there is a threat to their monopoly, they simply undercut them until they are gone and then rise prices again.
They will even buy the bankrupt competitors to get more of the monopoly!
“Also, if such a facility did come online, the Chinese would subsidize the price further until that company went out of business.”
the solution is for the FedGov to enter long-term contracts for large amounts of finished metals at a fixed price that guarantees a profit to companies that invest billions in rare earth processing ... the chinese can give away their metals to the rest of the world for only so long ...