A Break Down of the China-U.S. Rare Metal Wars

In this episode, Brian C. Adams is joined again by Louis O'Connor to provide an update on the strategic metals and rare earth elements market. They discuss how China has cornered the market for many rare earths and is now using that dominance for geopolitical leverage. Louis provides background on how China came to control rare earth production and processing, the challenges for the West to build out alternate supply chains, and how current tensions are impacting prices and stockpiling. He shares thoughts on investment opportunities during the supply gap period and key trends for investors to watch in this critical market.

[00:00 - 07:17] - Understanding Rare Earths and China's Dominance

• Defining strategic metals and their uses in everyday tech
• How China came to control rare earth production and processing since the 1980s
• China has restricted exports of some rare earths recently for geopolitical leverage
• The challenges for Western nations to build alternate supply chains

[07:18 - 14:52] - Challenges in Mining and Processing Outside China

• The environmental and regulatory hurdles around mining and processing rare earths
• The current lack of expertise in rare earth engineering and processing in the West
• Initiatives like the Inflation Reduction Act to promote domestic capabilities
• But building alternate supply chains likely to take 10-20 years

[14:53 - 23:26] - Geopolitical Tensions Impacting Rare Earths Market

• How China's export restrictions are impacting prices and stockpiling
• Potential for more Chinese export limits this year
• The race to reshore semiconductor manufacturing as part of the supply chain battle
• Europe's Critical Minerals Act to reduce dependence on China

[23:27 - 33:43] - Investment Opportunities and Outlook

• The investment thesis and opportunities around strategic metals
• Signs to watch for growing momentum and demand in this market
• Possible downside scenarios that could hurt rare earth investments
• Key takeaways for investors looking at this space

Key Quote:

"China pretty much has won the war when it comes to rare earths. We in the West now wait in line for what China will release after they satisfy their own domestic quotas." - Louis O'Connor

Connect with Louis O'Connor!

Website: www.strategicmetalsinvest.com

LinkedIn: https://www.linkedin.com/in/louis-o-connor-a583341b8/

This episode is sponsored by Mack International, a specialized executive search and human capital consulting firm serving the family office/wealth management markets. Please visit their website here for more information.

Download our FREE Strategizing for Inflation Guide here: https://www.excelsiorgp.com/download/

Connect with me:

https://www.linkedin.com/in/brian-c-adams/ (LinkedIn)

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