By stock_street_wire

This is Why the U.S. Needs to Secure Rare Earths

The electric vehicle story could be the hottest investment story of the year. Automakers are getting set to roll out several new EV models, including the now-available Ford (NYSE:F) Mustang Mach-E, Lucid Air, Rivian RIT & RIS, the Audi e-Tron GT, the Mercedes-Benz EQS, the General Motor’s (NYSE:GM) GMC Hammer, the Nissan Ariya, and the Texas Cybertruck.  Tesla Inc. (NASDAQ:TSLA) could see issues, as well.

“A new report by Cairn Energy Research Advisors, a research firm focused on the battery and EV industries, predicts a surge in electric vehicle sales in 2021 as countries around the world push new programs to encourage consumers to buy battery powered vehicles.  Cairn estimates global sales of EVs in 2021 will jump 36% and top 3 million vehicles for the first time ever.”

Exciting, sure.  But there’s a major supply issue.

For the EV boom to continue, we just a have a secure, more reliable source of rare earth outside of China.  Helping, “The U.S. Defense Department awarded a $30.4 million contract to boost domestic processing of light rare earth elements as part of an effort to become less dependent on China for critical technologies.”

“The Pentagon awarded the funds to Lynas Rare Earths Limited (OTC:LYSCF), the world’s largest rare earth element mining and processing company outside of China. The firm will use the funds to open a processing facility in Hondo, Texas, through its U.S. subsidiary, Lynas USA.”

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