Rare Earths: Independent REE Magnet Value Chain Solutions by Jim Kennedy of Caldera & ThREE скачать в хорошем качестве

Rare Earths: Independent REE Magnet Value Chain Solutions by Jim Kennedy of Caldera & ThREE

USA has no future in the modern economy if it cannot establish itself as a viable producer of the full rare earth value chain. Persistent flaws affecting all U.S. Projects: 1. China's Structural Advantages & Subsidies Make Western Competition Impractical. These Disparities Can Be Offset If The Resource Producer Transfers REEs Below Market Price, But China Can Simply Move REE Concentrate Prices Lower. 2. Without An Uninterruptible Domestic Source Of Tb, Dy & Ho All Efforts Remain Futile. 3. The Current Rare Earth Production Tax Credit Bill Is Fundamentally Flawed. Amendments Must Be Made To Prevent Windfall Profits For The Production Of Low-Grade Magnets Caldera Is Offering A Solution To All Of The Above Through Integration Of The Value Chain & Prospective Amendments To The REE Magnet Production Tax Credit Bill. China's Advantages in 4 Parts: 1) Massive overcapacity in the mid and downstream for rare earths materials processing (concentration, separation, metals & magnets) - built on low cost / no cost capital. a. Excess capacity allows for below-cost REE separation and metallics, relative to non-Chinese entities subject to normal capital costs b. This prevents competitive REE separation, metallics and magnet fabrication outside of China 1) Coordinated integration / consolidation of rare earth markets. For example: a. The government sets production, import and export quotas b. In 2016 China had "The Big 6" and now there are just 2 state sponsored rare earth companies c. On March 4, 2022 the Chinese government announced that REE prices were too high and that companies should "bring them back to reasonable levels" Downward price movement began the next day and continued for 24 months 2) China maintains a 13% VAT tax on the export of upstream REE materials and a VAT rebate on the export of post-metallic materials and magnets a. This acts as a subsidy to upper and midstream producers inside China because the VAT is reflected in global pricing and boosts in-country margins Jim Kennedy presented at 2025 MDSM (Motor, Drive Systems & Magnetics) Conference on 2025-02-19. Jim can be contacted via: https://threeconsulting.com Version notes: 20250219 Jim Kennedy MSDM Florida v20250324g