and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed.
Plans for Australia's Lynas to build a U.S. rare earths refinery with a Texas-based partner have collapsed, according to two sources familiar with the matter. Lynas has said it is trying to finish a rare earths refinery in Western Australia that has faced hurdles and isMP's goal of refining its own rare earth metals in 2020 was snagged by COVID-19 pandemic and technical challenges, shifting its target to the end of 2023.
Rare earths magnets turn power into motion and are the essential components in an electric vehicle's motor. They are lighter and can handle far higher temperatures than traditional magnets, in part due to their unique chemical properties. While MP relied on Chinese expertise to restart its mine— bought in 2017—that know-how is less helpful when it comes to tailoring refining equipment. Similar issues could plague about half a dozen other companies aiming to refine independently elsewhere in the world, analysts said.
By strategically focusing on industries that use the magnets—built with rare earths refined in China at profit margins purposefully kept low—Beijing can boost its booming EV industry, Castilloux added.in nearly three years, due in part to rising Chinese supply. China also offers a 13% export rebate to magnet manufacturers using its material, furthering its dominance.