China, Rare Earth
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Ever wonder what happens to those old, broken electronics after tossing them? How about how new ones are being produced despite dwindling resources? The seemingly endless supply of gadgets hides an increasingly critical problem: limited raw resources.
The VanEck Rare Earth And Strategic Metals ETF targets companies mining and refining rare earth and strategic metals for EVs and clean tech. Learn more about REMX ETF here.
NEW DELHI- China is further strengthening its dominance in the rare earth elements sector by making deeper inroads into African countries, which are rich in critical minerals like cobalt, lithium, and nickel, vital for the production of batteries, electric vehicles, and renewable energy technologies.
The supply chains of tech giants like Apple, car firms like Tesla and even the US military will be thrown into chaos if China follows through on threats to further choke off shipments of rare
As for the acquisition, the company bought Less Common Metals ("LCM"), a British firm focused on the rare metals space. USA Rare Earth paid $100 million in cash plus 6.74 million shares of its common stock for the acquisition. Based on the then-prevailing price of USAR stock, this amounted to total consideration of $217 million for LCM.
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President Donald Trump called China's rare earth export controls a 'bad moment' as both countries navigate tensions over critical defense materials, and potential tariff increases.
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