https://archive.ph/fX6zY
China produces the entire world’s supply of samarium, a particularly obscure rare earth metal used almost entirely in military applications. Samarium magnets can withstand temperatures hot enough to melt lead without losing their magnetic force. They are essential for withstanding the heat of fast-moving electric motors in cramped spaces like the nose cones of missiles.
On April 4, China halted exports of seven kinds of rare earth metals, as well as magnets made from them. China controls most of the world’s supply of these metals and magnets. China’s Ministry of Commerce declared that these materials had both civilian and military uses, and any further exports would be allowed only with specially issued licenses. The move, according to the ministry, would “safeguard national security” and “fulfill international obligations such as nonproliferation.”
The main American user of samarium is Lockheed Martin, an aerospace and military contractor that puts about 50 pounds of samarium magnets in each F-35 fighter jet. Lockheed Martin responded to questions with a short statement: “We continuously assess the global rare earth supply chain to ensure access to critical materials that support our customers’ missions. Specific questions about the rare earth supply chain will be best addressed by the U.S. government.”
The Defense Department awarded $35 million to MP in early 2022 to start production of samarium and several other rare earths that China has now restricted. MP then spent $100 million, using a lot of its own money, to buy the necessary equipment to process them, said James Litinsky, the company’s chief executive.
The Biden administration soon after awarded $351 million to Australia’s Lynas Rare Earths to build a facility in Texas that would also produce samarium.
Mr. Litinsky said the market for samarium was so small that it would be uneconomical to have two producers in the United States. So MP never installed its samarium processing equipment, which is still in storage.
But Lynas never built its Texas factory, after a permit it had for rare earth mining in Malaysia that was in limbo was eventually renewed. Lynas did not respond to emails and phone calls for comment.
MP is willing to install its samarium processing equipment now only if promised better financial terms by customers, Mr. Litinsky noted. “We felt very burnt by the whole thing,” he said.