Monthly Archives: May 2017

Docket DOC 2017‐0003, Administration Report on Significant Trade Deficits

Concerning section A subparagraph (e) identify imports and trade practices that may be impairing the national
security of the United States.‐07827/p‐16

China supplies over 95% of the US demand for rare earth elements. These elements comprise critical components
of many of our modern‐day technological devices and everyday electronics. REE demand in the United States is
projected to increase given global demand for green and sustainable products in energy, military, and
manufacturing uses. In 1984, the Molycorp Minerals, Inc. mine in Mountain Pass, CA, supplied 100 percent of U.S.
demand and 33 percent of the world’s demand for rare earths. The mine was shut down in 2002 for a variety of
reasons, and since that time, China has become the world’s leading producer of REEs, handling approximately 95
percent of worldwide production. (PA 600/R‐12/572 | December 2012 | Rare Earth Elements: A
Review of Production, Processing, Recycling, and Associated Environmental Issues).

Eutectix operates factories in Arizona and Michigan that manufacture rare earth materials critical to military and
industrial manufacturing. Eutectix acquired these facilities after market factors drove both predecessor companies
to bankruptcy leaving China as the dominant supplier.

Eutectix has retained our capability for making these products, but has lost the core of our magnet alloy powder
and rare earth conversion businesses. Eutectix currently makes many other high purity alloy products, such as
superalloy rods or master alloys and hydrogen storage alloys.

Eutectix acquired facilities in Troy, Michigan from the Canadian junior mining concern, Great Western Minerals
Group, Ltd in May, 2014. In April of 2016, we acquired the former MolyCorp Metals and Alloys plant in Tolleson,
Arizona. The Tolleson plant had ceased operating in December of 2015 and had been busy processing samarium
cobalt (SmCo) magnet alloy powders and iron neodymium boron (FeNdB) magnet powders. Eutectix has
production capability to convert rare earth (and scandium) oxides and fluorides to high purity metal in its Tolleson

We strongly support the notion that the U.S. must increase its competitiveness in the market for rare earth
elements and advanced materials.

We urge the administration to take meaningful action to
• reduce rare earth materials supply risk
• level the playing field for rare earth materials and value added products made from them