Justin Chan, Head of Research at SCP Resource Finance, sheds light on China's overwhelming grip on the rare earth market, processing over 90% of heavy rare earth materials. He explains how this dominance affects the pricing of critical technologies like EVs and defense systems. The discussion reveals the harsh reality for junior miners, with many struggling to turn a profit. Chan also highlights the potential of the White Mesa mill in the U.S. to disrupt this monopoly, and examines the cyclical nature of metal prices, particularly uranium.
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insights INSIGHT
Rare Earths' Geopolitical Importance
Rare earths are critical inputs for strongest magnets needed in electrification and military tech.
China dominates supply with 70% light and 90%+ heavy rare earths, giving it geopolitical power.
insights INSIGHT
China Controls Rare Earth Prices
Despite rare earths shortage, prices remain near break-even due to lack of non-China supply volume.
Western demand is met by finished goods from China, letting China control pricing at source.
insights INSIGHT
China's Rare Earth Monopoly Origins
China dominated rare earths by combining good geology with an integrated ecosystem for cheap, efficient processing.
Their niche rare earth market dominance contrasts with inability to dominate larger metals like copper.
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China sets the price, and the West scrambles to keep up. In this insightful interview, Justin Chan, Head of Research at SCP Resource Finance, sits down with Trey Reik to explain why 90 % of heavy rare earths are still processed in China, how that gives Beijing pricing power over EVs, wind turbines, and defense tech, and why even top-tier mining projects are barely breaking even.
Key Topics:
• China’s supply-chain chokehold: 70 % of light Rare Earths, 90 %+ of heavy Rare Earths
• Price suppression playbook: how Beijing keeps rivals on the back foot
• Mining’s brutal math: 4,000 junior miners, but most never pour metal
• White Mesa wildcard: the lone U.S. mill that could challenge China’s monopoly
• Cost-curve support: spotting upside in rare earths, uranium, lithium, and gold
• Uranium reset: from $30 to $100 and back to $70 price swings and SCP’s $80/lb long-term view
Would you like to hear more about SCP and its rare earth mineral projects? Get their white paper here: https://wealthion.com/rare-earth-metals/
Chapters:
1:14 - What Exactly Is SCP Resource Finance?
4:30 - Why Is Profitable Mining So Hard?
7:53 - Discovery Silver: A Proven Mining Dream Team?
9:40 - If It’s Discovery “Silver,” Where’s the Gold?
10:20 - How Risky Is Permitting Mines in Mexico?
11:39 - Why Do Mines Now Take Decades to Build?
14:10 - Rare Earths Demystified: What They Are & Why They Matter
16:43 - Rare Earths Are in Short Supply… So Why Are Prices So Low?
18:19 - Is China Gaming Rare Earth Prices to Keep Control?
19:12 - Can America Break Free from China’s Rare Earth Grip?
21:20 - How Much Would It Really Cost to Build Rare Earth Infrastructure?
23:33 - Why Is One Rare Earth Stock Soaring While Another Lags?
26:19 - The Rare Earth Companies That Actually Deserve Your Attention
31:38 - Why Rare Earths Are Really a Magnet Market Story
33:51 - Could Ukraine Become a Key Player in Rare Earths?
35:02 - What Are Ionic Clays—and Why Investors Should Care
35:27 - Uranium Prices Are Sliding—Time to Buy the Dip?
38:08 - Where the Real Value Lies in Uranium Stocks42:04 - Where Uranium Prices Are Headed from Here
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Hard Assets Alliance - The Best Way to Invest in Gold and Silver: https://www.hardassetsalliance.com/?aff=WTH
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