Recently, foreign media reported on the establishment of a joint venture company by rare earth suppliers from the United States and Australia, which has attracted a lot of attention. Some analysts believe that this move is to fill a key gap in the US rare earth supply chain. But is it really so easy to fill the gap?

According to the Wall Street Journal website on May 21st, American chemical companies Blue Line and Australian mining company Linus Mining are hoping to establish their first rare earth separation plant in the United States, seeking to increase the supply of important commodities.

Reuters reported that Linus is the only major rare earth producer in the world outside of China; Blue Line is a leading brand in the US rare earth supply chain. Both parties will cooperate to establish a factory in Texas next year, with Linus as the major shareholder of this joint venture.

According to Linus, the joint venture established by both parties has made up for an important part of the domestic rare earth supply chain in the United States in recent years. With the advent of the digital age, rare earths are crucial for the development of high-tech industries. The two companies will work together to provide a local supply source for the United States, and the complete rare earth supply chain of American enterprises will not be broken.

Some analysts believe that the partnership plan between Blue Line and Linus Mining highlights the growing concerns of the US business community about the Trump administration's remarks.

The Wall Street Journal website states that China dominates the rare earth production sector, and some of the world's largest rare earth consumers are American manufacturers in advanced technology fields such as electric vehicles, wind turbines, and military equipment. Because of this, despite escalating trade frictions, the United States has been unwilling to impose tariffs on Chinese rare earth commodities.

And the United States has a high dependence on such resources.

However, it is quite difficult for the United States to establish a domestic rare earth supply chain in the short term.

In February 2016, the US Government Accountability Office released a report on rare earth materials, estimating that it may take 15 years for the US to establish a domestic rare earth supply chain.

In addition, according to the analysis of Thorium and Rare Earth Consulting Company in the United States, fewer than 5 of the 400 rare earth start-ups in the United States have entered the production stage, and only two can be mass produced, one of which has a Chinese background.