Goldman Sachs says the West must invest over US$25bn to match China supply of rare earths

<p>The news last week that China is cranking up its retaliation, firing a shot across the bows on minerals:</p><ul><li><a href="https://www.forexlive.com/news/china-restricts-export-of-metals-used-in-high-performance-chips-20230703/" target="_blank" rel="follow">China restricts export of metals used in high performance chips</a></li></ul><p>with the danger the moves extend to more critical elements:</p><ul><li><a href="https://www.forexlive.com/news/china-expected-to-intensifty-retailiatory-chip-measures-lithium-curbs-are-the-fear-20230704/" target="_blank" rel="follow">China expected to intensifty retailiatory chip measures. Lithium curbs are the fear.</a></li></ul><p>This has focused minds in 'the West', given that at present China accounts for 90 percent of the global refined output of rare earths. Goldman Sachs analysts in a report in response, key points:</p><ul><li>China is the source of more than 70 percent of the world's NdPr and accounts for over 90 percent of the downstream metal and magnet segment. Replicating China's 50,000 tons per annum output could cost the West anywhere between $15 billion and $30 billion.</li><li>out of more than 20 projects outside China that could produce some 20,000 tons of NdPR annually," only two to three of these projects can get off the ground this decade"</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.