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Why it’s nearly impossible for America to meet its rare-earth needs after China’s export restrictions - MarketWatch

1. China restricts export of seven rare-earth elements critical for U.S. defense. 2. U.S. lacks capacity to produce restricted materials domestically, heightening vulnerability. 3. Immediate supply disruptions expected due to licensing changes in China. 4. U.S. will need up to 10 years to produce heavy rare earths independently. 5. Price increases anticipated for consumer products dependent on rare earths.

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FAQ

Why Bullish?

DEFN could benefit from increased demand due to U.S.-China trade tensions. Historical precedence shows defense industry growth during material shortages increases exploration interest.

How important is it?

The restrictions increase market opportunity for firms like DEFN focused on rare earths. The ongoing geopolitical landscape necessitates a shift in sourcing strategy, benefiting exploration companies.

Why Long Term?

While immediate disruptions impact supply, long-term investments in rare earths will grow significantly as U.S. seeks alternatives.

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