The Indicator from Planet Money What to make of the Ukraine minerals deal
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Mar 6, 2025 The pause in U.S. military aid to Ukraine raises new questions about a potential minerals deal. Experts discuss the strategic importance of rare earth elements, especially in the U.S.-China rivalry. Could Ukraine's untapped resources provide economic benefits, or are they just overhyped? The complexities and risks for private investors navigating this deal become clear amid ongoing conflict and outdated assessments. The geopolitical landscape could shift dramatically, depending on how this deal unfolds.
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Rare Earth Magnets in Missiles
- Tomahawk missiles contain strong neodymium magnets in their motors and electronics.
- These magnets, crucial for guidance, are made from rare earth elements, highlighting their importance in military tech.
China's Rare Earth Dominance
- Rare earth elements are essential for defense technology production.
- China's dominance in rare earth production raises concerns for US military security.
Rare Earth Abundance and Processing
- Rare earth elements are not actually rare, but processing them is complex and polluting.
- China's willingness to handle these processes gives them a significant advantage.