China, which produces almost all of the world’s supply of rare ear minerals needed by our advanced semiconductor manufacturers. In addition, the last two foreign owned rare earth refineries in China are being acquired by three state owned companies that operate refineries in China. This issue impacts the creation of semiconductors used for artificial intellilgence. The rare earth minerals from China are also used in U.S. made F-35 stealth fiughters and many other products including electric car motors.
China’s actions regarding the rare earth minerals has kickstarted increased efforts by companies in other countries including solvay, a Belgian company that refined dysprosium in France and Lynas, an australian company that will start refining dusprosium in Malaysia. However, Chinese companies have been purchasing rights to prduction mines of rare earth minerals in Tanzania, Greenland and Australia.
China is also ahead of the U.S. in the chemistry that allows refiners to extract more of the minerals at lower cost and it has 39 univerisities with programs to train engineers and researchers for rare earth minerals. Rare earth metals are used in U.S. commercial and defense applications. The directional capabilities of precision-guided munitions in missiles and guided bombs rely on rare earth materials . The minerals are also used inlasers used in target interrogators, target designators and rangefinders. Rare earth materials are also in electronic counter measures, coatings, optical equipment, as well as in the electrical systems in aircraft, which use samarium-cobalt permanent magnets to generate power.
Jeff Newman JD MBA, represents whistleblowers nationwide relating to Medicare and Medicaid fraud, under the state and federal False Claims Act (Qui Tam) and corporate whistleblowers in major claims under the SEC, CFTC and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
