Core Viewpoint - The article discusses the historical and structural reasons behind why the global supply of rare earth elements is heavily reliant on China for processing, despite the availability of these resources in other countries like the United States [1][3][21] Group 1: Historical Context - In the past, the United States was the dominant player in the rare earth market, supplying 90% of the world's rare earths and possessing advanced extraction technology [4][10] - The discovery of the Mountain Pass mine in California marked the beginning of U.S. dominance in rare earth extraction, which was initially limited to military applications [6][8] - China's significant rare earth reserves were discovered in Inner Mongolia, but initially, China lacked the technology for refining, leading to a reliance on exporting raw materials [8][10] Group 2: Structural Changes - The introduction of the continuous extraction method by Xu Guangxian in 1974 allowed China to refine rare earths independently, marking a pivotal shift in the industry [10][12] - The 1990s saw a surge in competition within China, leading to a tenfold increase in export volume but a halving of export prices, which adversely affected U.S. companies like Molycorp [10][12] - Molycorp's decision to relocate its refining operations to China in 2002 was driven by the lower costs of Chinese resources and labor [12][15] Group 3: Technological Advancements - China's aggressive investment in technology and price competition allowed it to catch up and eventually surpass foreign companies in refining capabilities [15][19] - By 2010, China controlled 90% of the global rare earth refining capacity, while foreign companies struggled to remain competitive [15][19] Group 4: Current Landscape - Despite attempts by the U.S. to revive its rare earth production capabilities post-2019, over 70% of U.S. rare earth raw materials still need to be exported to China for processing [17][19] - The article emphasizes that controlling resources does not equate to mastering the value chain, highlighting the complexities of the rare earth industry [19][21]