China does not sell it the electric motors with rare earth elements needed for missiles and drones. So we produce all sorts of useless in war junk, we just destroy metal. When investors catch on, this bubble will burst. Those who invest in scrap metal companies now will win. The fact that the West really wants and is trying to develop its own rare earth technologies will not matter in the next five years. It is important to have, not just to want. What we produce now goes straight to scrap metal. The huge Western subsidies to the defense industry are a suicidal waste of money. The extreme left and right will take advantage of this and throw the wasteful leaders out of power during the elections.
The Western defense sector faces serious challenges. China's restrictions on rare earth magnets and motors are making production difficult.
China’s restrictions and Western dependence
• China controls most of the world’s rare earth production and processing.
• New export restrictions are hampering the supply of advanced engine and drone components.
• Western companies are forced to urgently build local supply chains.
Investment and time frames
• Construction of new rare earth mines and processing plants takes 5 to 10 years.
• In the near future, supply will remain tight, so production volumes may stagnate.
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