The U.S. is running into a massive problem.
The government wants millions of electric vehicles on the roads. President Biden just pledged to cut emissions by up to 52% by 2030.
“The Biden goal will require the electric grid to be totally rebuilt in 10 years. According to the Natural Resources Defense Council, the U.S. will also have to double its share of carbon-free power to 80% from 40% today—half of which is now provided by nuclear—to have any hope of achieving Mr. Biden’s pledge. All coal plants would have to shut down, and natural gas plants would be phased into obsolescence. Wind and solar energy would have to increase six to seven fold,” as reported by The Wall Street Journal.
But there’s a massive problem…
One that could put the brakes on all of those plans.
Right now, the U.S. depends heavily on China for rare earth metals that green technology depends on. Problem is – China controls about 80% of the world’s rare earth supply – and is already threatening to heighten its regulations with such metals.
As a result, the U.S. is spending millions to find rare earth supply outside of China.
In fact, extraction efforts are taking place in U.S. hot spots, like Wyoming, Texas, and California. Companies like MP Materials (MP) restarted its Mountain Pass mine, attempting to “restore the domestic rare earths supply chain from mine to magnet, and is hedging its bets on neodymium-praseodymium, with the hope of becoming the lowest-cost producer,” as noted by CNBC.
With China increasing its regulations, and our desperate need for rare earths, this could be one of the top investment opportunities of the year.
To potentially profit from the story, keep an eye on stocks like MP Materials (MP), Lynas Corp. (LYSCF), and ETFs such as the Van Eck Vectors Rare Earth / Strategic Metals ETF (REMX).