The West is actively building a critical minerals supply chain independent of China, which historically controlled over 90% of processing, framing it as a matter of national and economic security.
The primary bottleneck is not a scarcity of raw minerals but a global concentration of processing capacity in China.
The strategy involves diversifying both mining sources (e.g., Latin America) and processing locations (e.g., US, France).
Public-private partnerships are emerging as a key catalyst.
government funding and due diligence, like the $1.6 billion CHIPS Act letter of intent for USA Rare Earth, are de-risking investments and attracting significant private capital.
Latin America, with massive untapped rare earth and lithium deposits in countries like Brazil, Argentina, and a potentially normalizing Venezuela, is positioned to become a crucial upstream supplier for the Western Hemisphere.
9 quotes
Concerns Raised
China's entrenched dominance in mineral processing presents a significant challenge to overcome.
The scale of the required investment is massive, estimated to be in the trillions of dollars over many years.
There is a critical shortage of skilled labor and expertise in rare earth processing and metal-making outside of China.
The risk of political instability or policy changes could disrupt long-term supply agreements and investments.
Opportunities Identified
Building a resilient, independent critical minerals supply chain for the U.S. and its allies.
Leveraging massive, untapped mineral resources in Latin America (Brazil, Argentina, Venezuela).
Public-private partnerships, with government funding de-risking and accelerating private investment.
Acquiring and scaling specialized European companies with legacy expertise in rare earth processing.