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The Pentagon is urgently assessing US rare earth capacity to ensure a stable supply in a trade conflict with the Chinese Communist Party (CCP) in the Sino-US trade war, according to a government document obtained by Reuters.

In May, after the Sino-US trade negotiations broke down, CCP threatens to confront the United States with rare metals. The US is also actively deploying, trying to use the local industry tungsten carbide burrs to get rid of its dependence on China.

The US Congress Republican Senator Marco Rubio launched a bill to promote the US rare earth industry on July 11. The bill will allow investors to form cooperative ventures, distribute profits and digest costs, and avoid violating the Antitrust Act. The move will limit investment risks, develop a relatively safe US supply chain, protect domestic markets, and avoid vicious competition from peers supported by the Beijing government. Therefore, the US can better cope with the Sino-US trade war.

Reuters reported on July 13 that according to the document issued on June 27, the Pentagon hopes that the mining companies will explain their plans to develop mines and establish processing facilities in the United States and requires US manufacturers to specify their demand for these minerals. According to the report, the Pentagon's deadline for comments is July 31. This short-term deadline highlights the Pentagon's urgency in this regard. The US government will end this fiscal year in September.

It is reported that the feedback received will be evaluated by two government contractors including Northrop Grumman. According to the report, the Pentagon document does not directly promise to provide loans, subsidies or other financial support to the US mining project. However, according to industry analysts and consulting firms, after the Pentagon's assessment of relevant feedback, it is expected that some forms of funding will eventually be provided to the industry.

According to the US Geological Survey, although China's reserves account for only one-third of the world, 80% of the total US imports, because China controls almost all the processing facilities.

The nine-page document says: "The overall goal is to ensure long-term suppliers in the country." The Air Force research lab drafted the request for the Pentagon and said it hopes to get "shortboard, risk, and opportunity with US rare earth production." "The relevant information, US military may be able to solve these problems through investment.”

According to the report, the only rare earth producer in the United States, Mountain Pass shipped its ore to China for processing. Not long ago, China announced that it would strengthen the management of its exports. The report also mentioned that some industry Tungsten Carbide Rods Double Holes analysts have called on the Pentagon to expand its research and directly support self-manufacturing through government investment.

Whether this document issued by the US Department of Defense’s Pentagon can help the United States get rid of the dependence of the US rare earth on China, in response to the CCP’ threat in the Sino-US trade war, we will wait and see.