According to new figures from USGS the US holds rare earth ore reserves of up to 13 million metric tones, but little of these sites are being developed due to the high costs involved. More info over here.
"No one [in the U.S.] wants to be first to jump into the market because of the cost of building a separation plant," Hedrick explained. The former USGS specialist said that such a plant requires thousands of stainless steel tanks holding different chemical solutions to separate out all the individual rare earths.
The upfront costs seem daunting. Hedrick estimated that opening just one mine and building a new separation plant might cost anywhere from $500 million to $1 billion and would require a minimum of eight years.
Lifton has also suggested that many U.S. companies have not jumped into the market because China's state-owned mines keep rare earth prices artificially low. But if U.S. companies do not begin mining American rare earth deposits soon, they may be left scrambling if China does one day stop exporting rare earths.