ZGXT(SZ:000831) Sou Hu Cai Jing·2025-11-11 09:36Core Viewpoint - The U.S. Treasury Secretary, Becerra, expressed optimism about achieving self-sufficiency in rare earth production within two years, claiming that China's influence in this sector will diminish. However, experts are skeptical about this timeline, suggesting that the development of a new rare earth supply chain is a lengthy and complex process [1][3][5]. Group 1: U.S. Rare Earth Industry Developments - Becerra visited a newly established rare earth processing facility in South Carolina, highlighting the production of the first rare earth magnets in the U.S. in 25 years, which are crucial for the supply chain [3]. - The U.S. has been actively seeking to reduce its dependence on Chinese rare earths, particularly following the challenges faced during the trade war initiated by the Trump administration [3][5]. - The U.S. government is pursuing international partnerships to secure rare earth supplies, including agreements with countries like Pakistan, Australia, Malaysia, Thailand, and Cambodia [3][5]. Group 2: Challenges in Achieving Self-Sufficiency - Experts, including Eurasia Group's head, have criticized Becerra's two-year timeline as unrealistic, emphasizing the lengthy and risky nature of developing new rare earth mines, which typically takes between six to eighteen years [5][6]. - Environmental regulations and operational costs are significant hurdles, as demonstrated by Lynas, the largest rare earth producer outside China, which has faced increased costs due to wastewater management and environmental permits [6]. - Even with substantial investment in new mining and processing facilities, the U.S. will struggle to compete with China's price advantages, which have historically deterred U.S. companies from pursuing rare earth projects due to profitability concerns [8].