Rare Earths’ Chinese Dependency ...
Rare Earths’ Chinese Dependency
Here are two key things you need to know about rare earth elements.
First, the real value of these metals is their unique electrical and magnetic properties that allow for miniaturization and much lighter, stronger, resilient, and efficient components.
While America has slept, China has become the Saudi Arabia of critical strategic metals. China is now responsible for 85% of the world’s rare earths production.
And second, China still accounts for a majority of the production of a variety of rare metals that go into Apple products such as the iPhone.
The supply chains around the world that play a role in producing all the components that come together in China for assembly are complicated and fascinating.
For example, though the battery is largely made by Samsung, the camera by Sony, the glass screen by Corning and the flash memory by Toshiba, only a few people actually know where all the materials that go into these components are sourced. It is a highly tuned and sensitive supply chain that has been scrambled by the Wuhan virus.
As of today, more than 60 million people are under strict quarantine in China. All domestic commercial flights are now suspended. Not surprisingly, business in China will not return to normal for at least a couple of months.
This disruption in production of assembly lines and rare earths may hit Apple’s profit margins down the road but the situation should boost rare earth prices and rare earth stocks...
https://cabotwealth.com/daily/emerging-markets/rare-earth-stocks-apple-investors-coronavirus/