Everything from Lockheed Martin 's F-35 Joint Strike Fighter jet to guided missiles and lasers used to determine targets rely on the elements to perform key functions. The country relies on China for 80 per cent of its imports, according to the US Geological Survey.
Defense contractors account for just 1 per cent of the US rare earth demand, or about 0.09 per cent of global consumption, Raymond James analysts including Pavel Molchanov, said in a note on Monday. China produced about 71 per cent of the world's output last year, according to the US Geological Survey.
Lynas' plant in Texas will have the capacity to produce at least 1,200 tons of so-called SEG oxide, a group of heavy rare earth elements, Lacaze said. The US imported $US160 million ($231 million) worth of rare-earth metals and compounds in 2018, an increase of 17 per cent from the prior year, but down from $US519 million of refined rare-earths in 2012, according to the US Geological Survey.
Each F-35 Lightning II aircraft - considered one of the world's most sophisticated, manoeuverable and stealthy fighter jets - requires approximately 920 pounds (417 kilograms) of rare-earth materials, according to a 2013 report from the US Congressional Research Service. It's the Pentagon's most expensive weapons system and the first fighter designed to serve three branches of the US military.
Rare earths including yttrium and terbium are used for laser targeting and weapons in Future Combat Systems vehicles, according to the Congressional Research Service report. Other uses are for Stryker armoured fighting vehicles, Predator drones and Tomahawk cruise missiles.
Bloomberg
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