Pentagon seeks funds to reduce U.S. reliance on China’s rare earth metals – by Phil Stewart and Andrea Shalal (Reuters U.S. – May 29, 2019)

https://www.reuters.com/

WASHINGTON (Reuters) – The U.S. Defense Department is seeking new federal funds to bolster domestic production of rare earth minerals and reduce dependence on China, the Pentagon said on Wednesday, amid mounting concern in Washington about Beijing’s role as a supplier.

The Pentagon’s request was outlined in a report that has been sent to the White House and briefed to Congress, said Air Force Lieutenant Colonel Mike Andrews, a Pentagon spokesman.

Rare earths are a group of 17 chemical elements used in both consumer products, from iPhones to electric car motors, and critical military applications including 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 world’s top two economic powers.

Between 2004 and 2017, China accounted for 80% of U.S. rare earth imports. Few alternative suppliers have been able to compete with China, which is home to 37% of global rare earths reserves.

For the rest of this article: https://www.reuters.com/article/us-china-usa-rareearth-pentagon/eyeing-china-pentagon-submits-new-report-on-rare-earth-minerals-idUSKCN1SZ2C6

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