Lacaze of ASX-listed Lynas,the world’s largest non-Chinese producer of rare-earth elements needed in permanent magnets,said the enormous disruption of the COVID-19 crisis had drawn more focus on the dangers of relying too heavily on one source of supply.
“Today,as we have had further challenges in terms of resilient supply chains – not just geopolitical but very much COVID reminded everyone that a singular supply chain is risk – we are seeing increased interest in outside-China governments,” she told the Sydney Energy Forum.
China controls more than 80 per cent of the world’s supplies of rare earths,a group of 17 elements needed to manufacture a range of products including smartphones,military weapons,wind turbines and electric cars.
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As trade frictions fuel concerns in the United States that Beijing could cut off supplies,the US Department of Defence last month signed a $120 million deal with Lynas to build a commercial processing plant in Texas,which would be first plant outside of China capable of separating heavy rare earths.
Following meetings with Australia’s Federal Resources Minister Madeleine King,US Energy Secretary Jennifer Granholm on Tuesday said countries like Australia and the US needed to work to develop their own clean technology supply chains.
“As the building blocks of clean energy technologies,critical minerals are an integral part to the United States and Australia’s shared climate objectives,” Granholm said. “Bolstering the diversity of and elevating responsible standards for their associated supply chains is an area ripe for enhanced bilateral cooperation.”