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US rare earth champion faces trade war test after tariffs halt China sales

Digest opened free editor

The US Central Mines of America’s efforts to build a rare local ground supply chain have arrested shipments from their centers to China after they occurred in the trade war between the two countries.

Las Vegas -based MP material has emerged as the best hope in the United States to overcome China suffocating over the production of rare land, a group of biological minerals in a group of high -tech industries. Its shares listed in New York increased by more than 60 percent this year, giving the group a $ 4.3 billion market.

But the company still sells most of its production of rare land that focuses on China, which is the world’s main treatment and semester center for such materials.

These sales have stopped, as three people said this issue to the Financial Times. One of them said that the Chinese retaliatory definitions of 125 percent on American products made sales not economic.

The sales of its Chinese -backed Chinese partner, SHINGHE Resources, a rare ground group, constituted about 80 percent of its revenues $ 204 million last year, according to the stadiums. SHINGHE indicates that MP buys market prices, the lowest import duties and other costs, as deposits appear.

There is a question about whether the US government will enter the deputy support, “said Graelin Baskaran, a decisive metal expert at the Center for Strategic and International Studies.

“They will be in a difficult place when they cannot export what they are producing,” she said.

After being asked to comment, MP materials introduced a statement that he had stopped shipping to China.

The mines said: “The sale of these important materials less than 125 percent of the customs tariff is not commercially rational and is not in line with the national interest.”

MP added that it has invested nearly a billion dollars to restore a complete rare rare ground supply chain in the United States. She now used a California refinery to treat half of its production and sell almost all of these materials outside China.

The company said it was “in close contact with federal leaders and encouraged their determination to support the American industry.”

The shares of the company fell more than 4 percent on Thursday. MP reached a net loss of $ 65 million last year and has $ 851 million in cash and $ 909 million of long -term debt at the end of the year.

Xing refused to comment.

MP is racing to separate and process more rare land in the United States, feeding on a permanent magnet factory in Texas to come online, and eventually the group provides a full local value chain to get it out.

Morgan Stanley has previously estimated that China’s MP sales will decrease to 40 percent of revenue this year, from 70 percent, with the appearance of the processing factory and Texas online factory.

Carlos de Alba, Morgan Stanley analyst, said he saw “two opposite powers on stocks” with the increasing geopolitical importance of MP, making it a more valuable advantage, which is corresponding to the definitions, which “will negatively affect the financial results in the short term.”

“The United States of America now has a MP champion that can provide a local solution for the rare ground magnets chain,” said James Littsky, CEO of the MP, Investors in February.

The group’s permanent magnet factory is now an important challenge in China. To date, MP has managed to separate and process rare light ground but not the essential rare Earth on an equal footing, especially Dysprosium and Terbium, needed to make a permanent high-performance magnet that goes to F-35 combat aircraft, cars, magnetic resonance machines and other electronics.

Chinese market participants say that export controls in Beijing on April 4 have stopped shipments issued by rare heavy land as officials developed a license system.

Yang Ji, the export monitoring lawyer at the Chinese company Huiye, said it is expected to take six months in this system. “There is no hope for rare land exports,” he said.

The representative’s timetable to separate the rare heavy land is unclear. The Australian Lynas Rare Earths group has a rare Malaysian factory to separate from the next Internet in the middle of the year and adopt a similar facility in Texas.

Currently, China is the only source in the world for rare land, analysts.

“The United States has two options – we will get the disruption of the supply chain or we can negotiate.” “It will be painful.”

She said, “China has gone to our deepest weakness. They did not go to those we are very exposed to, only those we are completely exposed to.”

The deputy said that he was “raising our rare ground capabilities” and remained confident in hitting the schedule for the production of the magnet and fulfilling its commercial obligations.

Additional reports on Camilla Hodgson, Chang Ling and Nick folds

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2025-04-18 02:05:00

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