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submitted 4 weeks ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 3 weeks ago

This should be a short term problem. Remember China has banned US contractors from acquiring their rare earth metals, so the US needs to start producing these materials due to the heavy exposure to imports.

There’s a big problem in the production of fighter jets because they (among other issues) need those materials that China is no longer willing to give, leading to contractors acquiring them “under the table”.

In response to this, the US rushed to advance rare earth metals production and invest in rare earth magnets production in Texas, which should start in late 2025. The reason why TSMC is starting a fab in Arizona is because the US’s first rare earth metals refinery is starting there as well, which means it should depend less on imports for these materials.

So hopefully, by mid-2026 it should be fine, that is assuming any of the other countless issues with the US economy don’t explode by then.