China is trying to bring rare earth manufacturing back within its borders. New Chinese export restrictions specifically target American plans to begin the country’s first commercial production of rare earth magnet materials by 2027.
REalloys (NASDAQ: ALOY) is rebuilding every major stage of North America’s rare earth industry. Over the past two years, the company has assembled heavy rare earth feedstock, separation, metallization, alloy production, and permanent magnet manufacturing into a single North American mine-to-magnet supply chain.
The company’s first commercial facilities are expected to come online in the New Year, just as the Pentagon’s ban on Chinese-origin rare earth magnets takes effect.
China’s strategy consists of several steps that gradually tighten Beijing’s control over the global rare earth industry:
- First step is the licensing requirement for exports.
- Second step targets specific companies.
- Third step is enforcement.
- Fourth step is fear.
These steps are making it increasingly difficult for Western companies to use Chinese supply chains.
