China is limiting US access to critical minerals in response to President Donald Trump’s tariffs, but the move isn’t as devastating as Beijing wants it to be.
Do you want to make a lot of EVs and wind turbines, and other electric motors?
If not, then refining volumes will be fairly small to just serve a tiny market.
China will still have scale/cost advantage, and a market to sell output nearby, and so it’s stupid to try and compete with them.
If the answer to step 1 is no, then STFU, or make a giant government subsidy program like CHIPS act to make refining costs have no capital costs. Not starting a war with whole world, might let you get stuff from Europe which answers yes to step 1, but either can treat China like friends not food, if they can’t compete.
Some of these things are important for national security reasons and so it will make sense to secure a percentage of the market, even if not economically sound, because there’s reasons other than profit that a country may want businesses in a certain sector to grow & survive.
If the answer to step 1 is no, then STFU, or make a giant government subsidy program like CHIPS act to make refining costs have no capital costs. Not starting a war with whole world, might let you get stuff from Europe which answers yes to step 1, but either can treat China like friends not food, if they can’t compete.
Some of these things are important for national security reasons and so it will make sense to secure a percentage of the market, even if not economically sound, because there’s reasons other than profit that a country may want businesses in a certain sector to grow & survive.