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(Image credit: Getty / Pla2na) Share Share by: Copy link Facebook X Whatsapp Reddit Flipboard Share this article Join the conversation Follow us Add us as a preferred source on Google U.S. Commerce Secretary Howard Lutnick has released a statement praising U.S. President Donald Trump for securing a deal that will see a critical minerals processing facility built in the United States. According to the X post, Korea Zinc will build the facility in Tennessee, which will have an annual output capacity of 540,000 tons of various materials, including gallium, germanium, indium, and other resources that are crucial for Washington’s push to bring back semiconductor manufacturing within its borders.
The U.S. is mostly dependent on China for its rare earth materials, especially as the East Asian nation supplies the majority of both raw and processed resources across the globe. However, the rivalry between the two powers has highlighted the United States’ vulnerability to decisions made in Beijing, especially as its export controls in retaliation to Trump’s tariffs have impacted the semiconductor industry . While China has eased some of its restrictions and have started issuing export licenses , the White House knows that it remains at the mercy of its rival.
Because of this, the U.S. is keen on developing its own sources for rare earth minerals. Despite being called rare earths, these minerals are actually abundant in the Earth’s crust. However, their concentration is usually pretty low, meaning they’re often not economically viable to extract unless mined alongside other materials that have higher levels. But because China has invested heavily in the mining and processing of these elements, it’s able to dominate the industry today, supplying nearly 90% of the processed and refined rare earths in the world while everyone else plays catch-up.
President Trump warns China of massive tariff increases in wake of expanded rare earths export controls
US and Japan move to loosen China’s rare earths grip
Key considerations
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Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/trump-secures-deal-with-korea-zinc-to-build-rare-earths-processing-facility-in-tennessee-facility-expected-to-have-annual-output-of-540-000-tons-of-gallium-germanium-indium-and-other-resources#main
- https://www.tomshardware.com
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