If the Chinese were to cut off the supply of rare earth permanent magnets tomorrow, the American OEM automotive industry would be immediately non-competitive in BEVs. The industry would be forced to use AC motors, which are heavier and less efficient than rare earth permanent magnet motors. Although the Washington crowd, I’m sure, would immediately impose tariffs on them, Chinese made BEVs would seriously challenge domestic American BEVs, I’m sure, on price and range. Let’s not even think about batteries, please.The American military demands for rare earth permanent magnets are much smaller than those of the civilian consumer markets, so in an “emergency” it is my belief that the DoD would “sequester” the output of MP’s Mountain Pass mine and spend like drunken sailors (who, I note are employees of the DoD) on downstream processing for their needs. The resulting magnets and motors would be of the fabled $10,000 toilet seats variety. No consumer product manufacturer could afford them. QUOTE ARR is definitely in a volatile market right now IMO.
https://investorintel.com/critical-minerals-rare-earths/the-not-so-shining-path-to-rare-earth-permanent-magnet-independence-from-china/
