Luisa Moreno: China Won't Dominate Rare Earths Forever

TL;DR

Despite China's dominance in the rare earths market, there is hope for companies operating outside China, but it will require time and effort.

Transcript

with the investing news network I'm Scott Tibbles I'm here today at PD I see day two in Toronto and joining me now is Louisa Moreno she is managing director of - hootie global here in Toronto thank you so much for joining me Louisa thank you Scott so you're an expert on rare earths and as all our readers will know Werth has been up and down the new... Read More

Key Insights

• 🇨🇳 China's dominance in the rare earths market is not a permanent situation, and companies outside China have a chance to succeed.
• 🌍 Metallurgy is a crucial component in processing rare earth deposits, and companies need to invest time and effort into finding individualized solutions.
• 🌍 Government support, financial backing, and prioritization of projects are necessary for the success of rare earths companies outside China.

Questions & Answers

Q: Can companies outside China compete with China's dominance in the rare earths market?

Yes, although it will take time. China's dominance was not always the case, and companies can succeed by exploring, developing projects, and investing in the necessary metallurgical work.

Q: Does government support play a role in the success of rare earths companies outside China?

Yes, government support is essential. Agreements between countries like the United States, Australia, and Canada are positive steps, but adequate financial support and prioritization of projects are necessary.

Q: What is the demand for rare earths beyond the defense industry?

The demand extends to various industries, such as electric vehicles. With the shift towards electric vehicles, there will be a significant need for rare earths, especially neodymium magnets for permanent magnet motors.

Q: Why do companies often mention the defense industry when discussing rare earths?

The defense industry's critical nature and substantial budget make it an attractive market for rare earths. It also serves as a marketing strategy, giving a sense of urgency and importance to the industry.

Summary & Key Takeaways

• China did not always dominate the rare earths market, and companies outside China can also succeed with the right processes and time.

• The Western model for rare earths differs from China's, relying on capital markets for financing and development.

• Metallurgy is a crucial component in processing rare earth deposits, requiring individualized solutions for each deposit.