{"id":16633,"date":"2025-04-07T17:53:42","date_gmt":"2025-04-07T17:53:42","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/04\/07\/china-escalates-trade-war-with-precision-strike-on-us-rare-earths-access\/"},"modified":"2025-04-07T17:53:42","modified_gmt":"2025-04-07T17:53:42","slug":"china-escalates-trade-war-with-precision-strike-on-us-rare-earths-access","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/04\/07\/china-escalates-trade-war-with-precision-strike-on-us-rare-earths-access\/","title":{"rendered":"China Escalates Trade War with \u201cPrecision Strike\u201d on US Rare Earths Access"},"content":{"rendered":"<\/p>\n

In a move that could severely disrupt global supply chains, China announced on Friday (April 4) that it will implement tight export controls on seven critical rare earth elements.<\/span><\/strong><\/p>\n

According to Reuters, the rare earths affected by the new restrictions \u2014 samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium \u2014 are crucial for the production of everything from electric vehicles and smartphones to military systems like fighter jets, missiles and satellites.<\/p>\n

China, which produces about 90 percent of the world\u2019s rare earths, has long held a dominant position in global supply, and these latest controls could further destabilize already fragile international supply chains.<\/p>\n

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A \u2018precision strike\u2019 on US defense capabilities <\/h3>\n

Mark A. Smith, CEO of NioCorp Developments (NASDAQ:NB), a company working to create domestic supply of critical minerals in the US, called China\u2019s actions a \u2018precision strike\u2019 against the Pentagon\u2019s supply chains. <\/p>\n

In a press release, he emphasized the far-reaching impact of rare earths export curbs on US defense technologies. <\/p>\n

\u2018This is a precision strike by China against Pentagon supply chains that enable our most powerful weapons and defense systems,\u2019 Smith said on Friday. \u2018These aren\u2019t just metals \u2014 they\u2019re bottleneck elements, and without them, much of the Pentagon\u2019s advanced hardware risks slipping from superiority to obsolescence.\u2019<\/p>\n

The rare earth elements targeted by China are not just vital for defense, but are integral to other industries too. From renewable energy technologies to high-end electronics, the list of affected products is extensive.<\/p>\n

NioCorp began to explore the possibility of recycling rare earths last year, alongside the feasibility of recycling post-consumer rare earth magnets to reduce reliance on Chinese imports.<\/p>\n

As the US military continues to modernize its technology, including hypersonic weapons and advanced satellite systems, the lack of access to these elements could have long-term supply implications.<\/p>\n

This latest round of trade tensions comes in the wake of US President Donald Trump\u2019s aggressive tariff policies and the imposition of a 54 percent tariff on Chinese imports. In March, Trump\u00a0invoked wartime powers under the Defense Production Act to address the nation\u2019s reliance on foreign critical minerals. <\/p>\n

The US Department of Defense has already been involved in efforts to develop domestic rare earths production capabilities, and this move from China may serve to accelerate those initiatives.<\/p>\n

China has increasingly wielded its dominance over critical materials as a weapon in trade war situations with the US in the past few years. Most recently, the country implemented similar curbs on minerals like gallium, germanium and graphite \u2014 all of which are key to high-tech and defense applications.<\/p>\n

While the recent export restrictions will not result in an outright ban, they will subject shipments to greater scrutiny, with controls targeting exports of materials used in both civilian and military applications.<\/p>\n<\/div>\n

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Growing calls for domestic production <\/h3>\n

The potential economic fallout from China\u2019s restrictions is substantial. Its dominant role in the global rare earths market means that the US and its allies have few alternatives when it comes to sourcing these materials.<\/p>\n

Ucore Rare Metals (TSXV:UCU,OTCQX:UURAF), a company focused on developing North American rare earths processing facilities, has stressed the need to establish a more independent and resilient supply chain.<\/p>\n

Pat Ryan, CEO of Ucore, which is developing its proprietary RapidSX rare earths refining technology, acknowledged the urgency of addressing these vulnerabilities.<\/p>\n

\u2018China\u2019s recent announcement highlights the urgent need for a robust and independent rare earth supply chain in North America,\u2019 Ryan maintained in a Friday press release. <\/p>\n

\u2018Ucore\u2019s RapidSX technology offers a transformative solution to this challenge, and we are committed to advancing our strategic initiatives to ensure a stable and secure supply of critical rare earth elements.\u2019<\/p>\n

Ucore has secured key funding for its initiatives, including a US$4.28 million deal with the Canadian government to demonstrate the commercial viability of its technology, and a US$4 million contract with the US Department of Defense. <\/p>\n

The company is also working to develop a rare earths processing facility in Louisiana, which could significantly reduce North America\u2019s reliance on foreign sources.<\/p>\n<\/div>\n

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

In a move that could severely disrupt global supply chains, China announced on Friday (April 4) that it will implement tight export controls on seven critical rare earth elements. According to Reuters, the rare earths affected by the new restrictions \u2014 samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium \u2014 are crucial for the production […]<\/p>\n","protected":false},"author":0,"featured_media":16634,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-16633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/16633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=16633"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/16633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/16634"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=16633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=16633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=16633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}