Colin Campbell, a Tesla official, cited the health and environmental risks associated with rare earth mining when he said the company will use a magnetic motor in the future that does not require rare earth metals.
JL Mag Rare-Earth Co. has closed. and Jiangsu Huahong Technology Stock Co., down more than 7 percent after comments at Tesla Investor Day.
China is the world’s dominant player in the mining and refining of rare earth minerals. These are the main raw materials used in various applications, including smartphones, electric vehicles, and military equipment. However, this over-reliance is becoming a growing concern for companies around the world.
Shares of the rare earth miner rose briefly in 2019 and 2020 amid speculation that Beijing may limit exports of the material amid trade tensions with the United States. At the same time, the development of strategic mineral resources outside of China has been ranked as one of the top priorities by President Joe Biden.
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