The US is looking to break China’s dominance in the rare earth magnet sector and put an end to its powerful monopoly. The latest development in tackling China comes after the Florida-based alloy manufacturing firm REalloys signed a strategic agreement with South Korea’s magnet manufacturer JS Link to develop and build the first fully integrated non-Chinese rare earth magnets. The deal is to bring together feedstock, separation, metallization, and permanent magnet manufacturing under a single North American industrial strategy.
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US Takes on China in Rare Earth Magnets
Magnets are the most potent commodity in ensuring military, industrial, and robotic power. Permanent magnets are heavily used in power-guided missiles, fighter aircraft, submarines, industrial robots, electric vehicles, AI infrastructure, and wind turbines, among others. China overwhelmingly manufactures the majority of the rare earth magnets and has put the US on the back foot. Beijing enjoyed extraordinary leverage over the market, making the US, Europe, and the world dependent on its pricing. The US is now looking to break its supremacy in the sector.
The recent agreements between REalloys and JS Link will create the path for magnet manufacturing on US soil. Just a week ago, REalloys was also selected by the US Army to negotiate to develop rare earth processing facilities. This was for the Tooele Army Depot in Utah, showcasing Washington’s seriousness about building rare earth magnets. The REalloys and JS Link agreement takes the US one step forward in taking on China. The firms are looking beyond manufacturing through finished magnets–inside a single American industrial platform.
“In rare earths, strategic advantage belongs to the country that builds the magnets. That’s the capability we’re building here in the United States,” REalloys CEO Lipi Sternheim told OilPrice. The rare earth magnet industry could see a major shift if the US overpowers China in the sector. The next competition across countries is the rare earth commodities that will power up the future.
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