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Rare metal prices fell sharply by February on a monthly basis, under pressure from weak demand, according to the Oil Price website.

Discovery

But another possible factor is the increase in global production of these minerals outside China, which may reduce their global importance in their production.

This comes as the Chinese economy continues to fluctuate due to the weakness of the real estate sector, which may also affect prices.

Currently, China continues to maintain its position as the world's largest producer of rare earth elements.

Given these factors, the monthly rare metals index (MMI) declined by 19.9% ​​this month.

According to the site, the discovery of rare minerals in Wyoming could significantly impact its global market by reducing the United States’ dependence on China to obtain them.

Several companies, including American Rare Earths and Ramaco Resources, recently discovered a large deposit of rare metal deposits in the western state, and current estimates indicate that the potential value of the reserves in these deposits is estimated in the billions.

Oil Price considered the discovery particularly noteworthy given that rare earth elements are essential for a number of cutting-edge technologies, including those related to electric cars, wind turbines and defense.

The United States currently imports a large portion of its needs for magnets and rare metals from China, and if estimates of the abundance of the recent discovery reserve prove, Washington may be able to reduce its dependence on foreign suppliers, especially China, while diversifying its supply chain for such metals, according to the site.

The new stockpile could support the energy transition in the United States and impact national security by supporting domestic manufacturing of technologies that rely on rare earth elements.

It seemed to "Oil Price" that the United States was expected to become a major player in the international market for rare earths, and with further research and development, these deposits may help Washington overcome China's dominance of this market by providing domestic supplies.

Restrictions

China recently imposed strict restrictions on the export of technology for rare earth magnets, and the extraction and separation of rare earths, a move that could significantly impact global supply chains and pricing of these items.

Ultimately, the 17 minerals classified as rare earth elements remain essential to many sectors of the global economy, including electronics, clean energy, and defense technology.

Rare minerals are China's weapon against the United States in the economic confrontation (Al Jazeera)

Oil Price pointed out that the restrictions imposed by China on rare elements and the technology used in manufacturing geomagnets are an intentional step to maintain its dominance in this market, as it currently processes about 90% of these elements around the world.

Expectations

Oil Price quoted experts who expect this to lead to a state of continued uncertainty and potential price volatility for rare metals throughout the current year.

Shares of rare earth processing companies rose in response to China's decision. For many, the ban also highlights the need to diversify rare earth supply chains and strengthen domestic processing capabilities abroad, according to the website.

The United States and its allies continue to work to increase domestic processing capacity and reduce dependence on Chinese shipments of rare earth elements.

Source: websites