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The impact of the world's magnetic material rare earth resource processing industry on the magnetic material industry

As we all know, China is the country with the most abundant rare earth resources in magnetic materials and the largest producer of rare earths. Most of the exported rare earths are shipped to Western Europe and Latin America, so the world's rare earth processing industry concentrates naturally on the above two. area.
Recently, the United States Molybdenum Corporation plans to use 1.3 billion US dollars to acquire a rare earth ore processor. The deal triggered industry officials’ warnings that it would further strengthen China’s status as a major source of specialty magnets used in consumer electronics and advanced weapons.
The US Molybdenum Company said on Thursday that the company plans to acquire Neo material technology company listed in Toronto, which is one of the world's major producers of rare earths converted into special magnets. Molybdenum Mines stated that this M&A deal will create a most diversified rare earth company outside China. At present, China holds a dominant position in the rare earth industry.
Molybdenum Corporation is headquartered in Greenwood, Colorado, USA. Mark Smith, president and chief executive officer of the company, said: "This merger will link two rare earth companies and realize integrated production from rare earth mines to special magnets."
However, because a subsidiary of Neo Materials Technology was acquired by China, the acquisition also paved the way for molybdenum companies to transport rare earth mines produced in California to China for processing.
Ed Richardson, president of the Magnetic Materials Industry Association of the United States, said that this acquisition plan is disturbing. In an e-mail, he said that the United States has "relied heavily on China, even to a very dangerous point," in rare earth magnetic materials, including the supply of weapons systems. The molybdenum company's export of rare earth assets from the United States to China will only further aggravate the problem.
Smith, president of Molybdenum, believes that this deal will not have much political and historical impact. He said that the shipment of rare earth resources to China is only to achieve "higher output and greater profits." This will only reduce production costs and expand the supply of rare earth products. Smith said: "Anyway, it will not weaken our supply to markets outside China."
Although most of the debate over China’s control of the rare earth market has focused on rare earth mineral resources, the Molybdenum’s M&A deal highlights China’s ability to process rare earth minerals.
Like molybdenum companies, analysts also believe that the M&A deal will allow the company to acquire new technical capabilities, especially in the production of NdFeB magnetic powder. The U.S. company will become more international, and its production and sales will expand to new markets. Molybdenum argues that as the company restarts its rare earth mine in California, which was once the world’s No. 1 rare earth mine, it shut down several years ago due to falling rare earth prices and environmental considerations – the M&A deal also reduces the company’s production. cost.
Molybdenum's M&A deal also included a subsidiary of Neo Materials Technologies in China. In the United States and other western countries, they are often reluctant to open a rare earth processing plant that causes environmental pollution due to environmental concerns. Last year, molybdenum mine company itself gave up a plan to cooperate with Hitachi, Japan, to open a factory for producing rare earth magnetic materials in the United States.

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