30/09/2026
Rare earth derisking will not succeed through supply-side investment alone. ussc.edu.au/the-missing-market-why-us-and-allies-rare-earth-derisking-needs-a-demand-side-strategy
The United States and its allies are investing in new mines, refineries and magnet facilities. But sustained commercial demand for more expensive rare earths produced outside China is not a given.
Private firms have strong incentives to buy the lowest-cost products and fear paying a premium that their competitors may avoid. Beijing can exploit this by driving down prices to undermine alternative suppliers as they come to market.
In a new USSC report, Dr Naoise McDonagh argues that dependable producers must be matched with bankable, long-term demand.
He proposes an Economic Security Agreement to aggregate demand, stabilise project revenues and create a commercially viable market for qualified supply across the rare earth permanent magnet supply chain.
The core policy challenge: convert economic security from a voluntary corporate choice into an enforceable market rule.
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Read McDonagh's insights → https://www.ussc.edu.au/the-missing-market-why-us-and-allies-rare-earth-derisking-needs-a-demand-side-strategy
