China will slap a 25 percent tarrif on rare-earth materials

Channel: Fox Business
Published: 5 hours ago

Description
Blue Line CEO Jon Blumenthal on rare earths and the mounting trade war with China. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business capital of the w...



Transcript
Tomorrow, china will slap a new 25 % tariff on rare earths. The inputs that companies used in everything from phones to cars, to medical devices blue line corporation in texas is the first and only company outside of china that can do this rare earth, processing and production. Its ceo, john blumenthal, spoke exclusively to us materials, we're looking at doing our the heavier rare earth materials ...
nd there's no commercial plant in the world that is actually separating these materials other than inside china, and these are very, these are strategic materials that are used for A number of high-tech and defense applications. What is the opportunity of that for you, whether it's in volume or dollars, right nowchina, has a stronghold on the on the raw materials the so, basically, the world is dependent on china for these critical materials and these high-tech applications. So so i think one is the opportunity to have to have these materials separated and produced outside of china and to their the the market. Size is seven several hundred million dollars. We talk about moving supply chains. How how quickly can you do that it would take about a year of construction and then this next year, the next year to start up so we're talking two to three years to get into production? Is it prudent for china to weaponize their export controls? China has grown their economy tremendously, overthe last 20 or 30 years. I'M sure you're aware a lot of what they've done is is they've really looked at it from the bottom up they're looking at complete supply chains, they've been very smart as far as looking from the supply chain from where the material comes out of the ground. All the way to the finished, electronics and they've devised and built an incredible infrastructure there and a number of companies that china has offered incredible, deals for and enticed companies to come into china so moving those supplies. Gon na take some time, and, of course, china can always restrict exports entirely. My thanks again to the blueline ceo john blumenthal.



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