Keep an eye on rare earth stocks, like MP Materials (MP).
Biden announced a series of steps to strengthen key U.S. supply chains, including rare earths.
In fact, according to a June 2021 report from the White House, as noted by CNBC, “The Department of Interior will lead a task force to identify sites where critical minerals could be produced and processed in the United States.” The report said the U.S. will develop the capacity for “sustainable production, refining, and recycling” of the 17 rare earth metals used in cellphones, cars and magnets, while meeting high environmental standards.”
At this point, we really have no choice, but to secure our own earth supply.
That’s because, as noted in the Biden report, “China has shown a willingness to restrict access to resources, with reductions in its exports of rare earth elements over the past ten years. Thus, it is reasonable to expect that China could restrict exports of any or all of the battery supply chain materials it produces, due to trade tensions with the United States or a simple prioritization of domestic customers for its battery materials.”
In addition, not long ago, MP Materials announced it received a $3 million award from the Department of Energy to complete a feasibility study with the University of Kentucky (UK), on a system to produce rare earth oxides, metals, and other critical materials.