The Peter Zeihan Podcast Series Rebuilding the American Industrial Base, Rare Earths Edition || Peter Zeihan
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Jul 8, 2025 The discussion dives into the complex dynamics of U.S.-China trade, particularly focusing on the importance of rare earth elements. It highlights how these critical materials are vital for American manufacturing and critiques past trade strategies. There's a strong call for the U.S. to bolster its own rare earth processing infrastructures to mitigate supply chain risks. Overall, it underscores the challenges and potential pathways for American reindustrialization.
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US Trade Talks Hampered by Staff Gaps
- The recent US-China trade talks struggle because the US lacks expert staff and clear strategies.
- Trump administration's small and siloed trade team hampers effective negotiation against China.
Rare Earths Are Not Actually Rare
- Rare earths are not actually rare but hard to source because they don't occur in high concentrations.
- Extraction involves multiple chemical steps and takes six to eight months from several tons of material.
China's Subsidy-Driven Dominance
- China controls rare earth production by subsidizing and ignoring environmental costs.
- This made their prices much lower, dominating the global market for rare earth materials and magnets.