2. Challenges and issues
In early 2022, two U.S. senators introduced a bill aimed at reducing
U.S. dependence on China for the supply of rare earths. The bill would
require the Departments of the Interior and Defense to create, by
2025, a "strategic reserve" of rare earths capable of meeting the
essential needs of the military and priority infrastructure for 1
year, in the event of a disruption in the supply chain.
This risk does exist, as China regularly uses its position of
strength as a means of pressure, as was the case in 2010, when it
abruptly interrupted rare earth exports to Japan, following a territorial
dispute.
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Challenges and issues