Supply Chains: Ditching China

Yet more evidence of global supply chains looking to diversify. The US Pentagon is investing in a processing plant with Aussie company Lynas to break China’s stronghold on rare earths.

Several months back the Japanese government put out a $2bn package to incentivize companies to pull production out of China back to Japan.

We have invested in a company called Jervois Mining (JRV) in Australia. JRV has a cobalt mine in Idaho. Cobalt is one of the core ingredients used in EV batteries. We think China’s current 80% global share in cobalt refining supply will be the next pin to fall. The investment in US-based domestic capacity is the logical next step. Seems like a no brainer.

NB this doesn’t constitute financial advice.

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