US defence initiates moves to store Rare Earth Minerals, stress on magne

Washington: The United States has expedited moves to reduce Chinese domination in the Rare Earth Minerals, necessary in the defence sector. The US defence department has submitted a proposal to stock Rare Earth Minerals equivalent to six months consumption. A few months ago, China had cautioned that the Rare Earth Minerals may prove to be an effective Counter Weapon in Chinese hands against the background of the trade war, and China my even use it.

The massive requirement of Rare Earth Minerals in the US defence sector has become a vital issue for the Trump administration. Although there are operating mines of Rare Earth Minerals, in the United States, they are processed by China. For this, the company Mountain Pass Materials exports nearly 50,000 tonnes of minerals to China and reimports them. There is a possibility that the strained US-China relations may affect this arrangement and the United States needs to make some immediate alternative arrangements.

There is a large-scale requirement of Neodymium Iron Boron (NdFeB) magnets in the javelin Missiles and advanced F-35 fighter jets, operational in the US defence forces. Currently, Japan and China are the most prominent manufacturers of these magnets. The Hitachi Metals Limited also holds the patent for the process for the magnets. Whereas, the Urban Mining company operational in the United States reprocesses the magnets. But China holds the maximum deposits of the basic Rare Earth Minerals.

Taking this into account, the proposal of the US defence department becomes significant. The US defence department has made a provision of $10 million for this purpose and has asked the related undertakings to contact, before the end of 2020. The sole US manufacturing facility for NdFeB magnets was closed in 2015 and its machinery also have been sold. A group of entrepreneurs from the United States has advised that the defence department should build a facility to manufacture these NdFeB magnets only for storage purposes.

It is claimed that 30% of the Rare Earth Deposits in the world are in China. The Chinese share in the manufactured Rare Earth Minerals is to the tune of 95%. Whereas, 80% of the US requirement of Rare Earth Minerals is imported from China. In 2010, the Chinese leadership had forced the Japanese government to bow, stopping the supply of Rare Earth Minerals. There is a fear in the US circles that China can repeat the same strategy against the United States.

The US defence department had submitted a report to the US Congress in June. The report mentioned various possibilities, options and proposals regarding Rare Earth Minerals. The report suggested that there was a need to release additional funds for the ensuring that there is no shortage of the Rare Earth Minerals and the concerned companies need to be instructed to keep additional stocks of the minerals. The new proposal seems to be in continuation of the same report.