US Treasury Secretary Touts "Breakthrough in Domestic Rare Earth Magnets," but Industry Independence Faces Challenges
Views: 0 Author: Site Editor Publish Time: 2025-11-14 Origin: Site
Event Focus
High-Profile Declaration: Treasury Secretary Bescent showcased a US-made rare earth magnet, claiming "25 years of breaking free from China’s supply chain grip," with forecasts of a manufacturing boom within two years.
Industrial Reality: Critics label this a "PR stunt." The US currently only produces single-unit magnets, while mass production capability, cost control, and quality consistency remain critical gaps. China still dominates 90% of global rare earth magnet output and 80% of processing capacity.
Industry Bottlenecks
Cycle Mismatch: Political cycles (short-term goals) clash with industrial cycles (decades-long investments);
Cost Disadvantage: Government-subsidized magnets are priced far above Chinese alternatives;
Ecosystem Gaps: Absence of supporting clusters and specialized talent.
Technical Gaps: The US lacks expertise in precision processes like rare earth refining, alloy preparation, and magnet forming.
Three Barriers:
China’s Countermeasures
Flexible Controls: Eased export restrictions on downstream components (e.g., motor rotors, consumer electronics) to avoid escalation while maintaining market leverage.
Technical Edge: Advanced processes (e.g., grain boundary diffusion) keep high-end NdFeB performance at global forefront.
Rare Earth Price Update (Nov 10, 2025)
Source: Shanghai Magnetic Construction
Dysprosium Iron: ¥1,510,000/ton (unchanged)
Terbium Metal: ¥8,250,000/ton (unchanged)
Neodymium Metal: ¥697,500/ton (unchanged)
Praseodymium-Neodymium Mix: ¥682,500/ton (increased, reflecting EV demand recovery).
Industry Outlook
US Efforts Face Hurdles: Scaling production requires overcoming cost, stability, and ecosystem challenges. Lab prototypes ≠ commercial viability.
Global Diversification: Korea, Malaysia, and India accelerate local supply chains, yet China’s dominance persists through technical and cost advantages.
