How the trade war is turbocharging an American rare earth mine: ‘it’s all changed’
USA Rare Earth is receiving a surge in investment as America rushes to reduce its reliance on Chinese rare earth magnets
For Joshua Ballard, the US’ trade war against China has been a game-changer.
The CEO of USA Rare Earth – a company launched in 2019 with the goal of reviving America’s rare earth magnet supply chain – was having a hard time raising capital from Wall Street until a few months ago.
China has dominated the rare earths sector for decades, with its firms having a huge competitive advantage due to their lower costs and massive capacity, making the American company’s vision a tough sell to investors.
All of a sudden, the investment environment “all changed”, Ballard said, and the CEO has been quick to take advantage.
“We’re looking at how we can accelerate,” he told the Post in an interview near his home in the San Francisco Bay Area. “We want to be a major player in this.”
Last month, the Pentagon invested US$400 million to acquire a big stake in MP Materials, which owns America’s only operating rare earth mining and processing facility. Apple also struck a US$500 million deal with the company to create a recycling facility to shore up its rare earth magnet supply.
Meanwhile, the Trump administration approved a licence for a new mining facility in the state of Wyoming – the first approval granted for a US rare earth mine in 70 years.