How the Chinese dominance in the rare earths space creates a barrier for non-Chinese companies to enter the supply chain

3 responses

1. 

   38BWD22

   Tracy and/or Jack,

   Please find a way to make transcripts of these interviews. The rare earth space is of great interest to me, but listening to audios works poorly for me.

   It is nice to see various N. American companies making their moves into this space, I am following this as closely as I can. About time they’re doing so, and I hope one or more of them can pull this off.

   July 16, 2021

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2. 

   Rare Earths Investor

   Thank you for focusing on another of the choke points for any potential RE value chain. I think we (particularly investors) get lost at times in the idea that it’s the RE mining that is the focus for any new strategic chain. In N. America alone there are at least a dozen or so mining exploration projects so the feedstock is not the problem, rather the processing and component making; the more valuable stages of the RE chain.

   One point that the interview did not mention is the looming ESG question which is now often front and center for many RE company releases and for regional macro RE news articles. What if the EU (and US) really do focus on mid and end line manufacturer ESG compliance, both in terms of self and supply chain usage? Specifically, this means company and supply chains meeting environmental, worker and social requirements (issues that some RE/related Chinese companies and potentially China as a nation could have a serious problem in confronting and meeting)?

   Failure to meet coming ESG standards as recent EU releases have suggested may mean restriction even denial of access to the huge EU market (and maybe N. American). I know this sounds impossible, but could we see two huge markets eventually supplied predominantly by their own ESG compliant companies/chains with barriers to any non-compliant manufacturers? In other words, two markets decoupled in several certain sectors while inter trading in many others?

   But then as the interview raised, how would such a proposed chain overcome e.g., the magnet patent question? However, would the US military/defense complex let this issue actually stimy its meeting self-strategic needs? Or, might we see a more centralized control approach to ‘finding’ a ROW answer to this specific component question? In other words, are the gloves coming off for the US in terms of achieving self-reliance (and potentially engaging in new energy economic competition; have written on this issue extensively elsewhere)?

   Two years ago, I would have said all this can’t be done due to last the decade’s oft highlighted RE limitiations), but I think investors should now consider ‘left field’ in their DD. Afterall, for the US left field was COVID, 600,000 dead, entire nation wearing masks, no in school education, trillions $$ thrown at supporting a nation, a vaccine in 10 months and now even a possible mandated vaccination policy, etc. Therefore, is traditional thinking alone now enough to answer these critical metals US/ROW questions?

   Again, thanks for the challenging interview. Maybe others will join this discussion.

   GLTA.

   July 17, 2021

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3. 

   Michael Hudson

   What about Arnold? https://www.arnoldmagnetics.com/permanent-magnets/ do they not have patent permits from Sumitomo? Do they not supply the north American market? Just got aquired by NYSE: CODI Does NeoPerformance Materials and REETech not already make magnets in Europe? RHEINMAGNET Horst Baermann? ThyssenKrupt and Schaefler tech are buying up a lot of offtake from the likes of Rainbow rare earth and Northern Minerals. Are they not making REE magnets for the automotive industries? This seems like a very partial and almost misinformative interview. If I’m wrong, please let me know. If I’m write, it’d be great to know it as well. I’m an investor, not an expert, but I do a lot of research and have always valued what you have to say.

   August 5, 2021

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