Provided by Eric Onstad
London (Reuters) -Thanks to stop China’s dominance in the “Rare Earth market” and encourage investment in its industry with tools with Washington’s supported plan to create a separate price system.
The West was trying to weaken Chinese adhesion to 90% of the supply of rare lands, partly because the low prices in China eliminated the incentive to invest elsewhere.
Mountains in the West have long called for a separate price set -up system to help them compete by supplying 17 metals needed for super strong strategic magnets, a group of rare lands. They are used in military programs such as drone and fighter jets, as well as EV and wind turbine engines.
According to a publicly announced agreement last week, the US Defense Department will guarantee the minimum price for its only Retet Earth MP MP materials, almost twice the current market level.
Las Vegas, a member of the parliament, is already producing excavated and recycled rare lands and said he hoped that commercial magnets would be launched at the Texas office at the end of this year.
Analysts say the price determination agreement, which immediately comes into force, should have global consequences – positive manufacturers, but can increase costs for consumers such as car manufacturers and in turn their customers.
“This benchmark is now a new gravity center in the industry that will increase prices,” said Ryan Castilloux, CEO of Consultancy Adam Intelligence.
DOD will pay the difference from $ 110 per kilogram for two most popular rare land and market price, which is currently set by China, but if the price rises over $ 110, the DOD will receive 30% of the extra profit.
Castilloux said other indirect beneficiaries of the price system may include companies such as the Belgian chemical group Solvay, which launched development in April.
“It will give Solvay and others to command a similar price level. It will give them the floor to stand, you can say, “Castilloux added.
Although Solvay refused to comment, other Rare Earth’s miners, creators and their shareholders welcomed the news.
Aclara Resources develops rare land mines in Chile and Brazil, as well as plans to a separation plant in the US. Alvaro Castellon, Head of Strategy and Development, told Reuters Reuters, adding “new strategic roads” to the company.
MP gradual output increase
MP materials that suffered $ 65.4 million last year. The USD, mainly due to low Chinese prices, will initially increase Magnet production at the Texas factory to 1000 metric tones per year, then increase to 3,000 tons per year.