Rare Earth Discovery in Wyoming Could Reshape U.S. Economic and Manufacturing Landscape

Following the recent election, billionaire Elon Musk has cautioned that the U.S. economy is teetering on the brink of bankruptcy. He has urged former President Donald Trump to consider Bitcoin as a potential solution to the nation’s ballooning debt. However, a groundbreaking discovery of rare earth minerals in the United States may chart a new course toward economic resilience and global manufacturing competitiveness.

Currently, China dominates the global rare earth market, accounting for 95% of the world’s rare earth mineral production and holding over 31% of global manufacturing output. In contrast, the United States relies heavily on imports, sourcing 74% of its rare earth minerals from abroad while contributing only 15% to global manufacturing.

This imbalance, however, could soon shift, thanks to a significant find by American Rare Earths in Wyoming. Earlier this year, the company struck an unexpectedly rich deposit of rare earth minerals, including neodymium, praseodymium, samarium, dysprosium, and terbium, which are crucial for advanced technology such as smartphones, hybrid vehicles, aircraft, and even everyday items like light bulbs and lamps.

The discovery is still in its early stages, with only 25% of the company’s drilling project completed, suggesting there could be much more to uncover. This could mark the beginning of a transformative era for U.S. rare earth mineral production and manufacturing.

The discovery comes amid increasing efforts to reduce dependence on Chinese resources. In December 2023, the U.S. imposed a ban on rare earth mineral extraction, aiming to match or exceed China’s output. American Rare Earths began drilling in March 2023 and initially estimated a reserve of 1.2 million metric tons of rare earth minerals in Wyoming. Since then, the company has exceeded expectations, increasing its estimated yield by more than two-thirds.

“These results are illustrative of the enormous potential of the project,” said Don Schwartz, CEO of American Rare Earths. “The resource increased by 64 percent during a developmental drilling campaign, which increased measured and indicated resources by 128 percent. Typically, you’ll see the resource decrease as infill drilling takes place – instead, we’re seeing the opposite, with only 25% of the project being drilled to this point.”

American Rare Earths’ discovery is not an isolated event. Another company, Ramaco Resources, has also reported finding a deposit of rare earth materials near Sheridan, Wyoming, valued at approximately $37 billion. The findings signal a promising trend for U.S. mineral exploration.

Randall Atkins, CEO of Ramaco Resources, highlighted the challenges and opportunities of mining these materials. Speaking to *Cowboy State Daily*, he said, “We only tested it for 100, 200 feet, which is about the maximum you’d ever want to do a conventional coal mine. Much deeper than that, and the cost would be prohibitive to mine for $15-a-ton coal. But there are seams that go down almost to 1,000 feet. So, we’re drilling down into the deeper levels to see what’s down there.”

While Ramaco’s estimates of the deposit’s value are substantial, Schwartz of American Rare Earths was skeptical about their comparative significance. “Our resource is on an order of magnitude larger than the Ramaco Resources number,” he said. “If you did the same thing for it, you’d come up with a lot bigger number, but that doesn’t take into account whether you can [mine and process] more economically, or even do it.”

The potential implications of these discoveries are vast. If fully realized, the U.S. could significantly reduce its reliance on imported rare earth minerals and bolster its domestic manufacturing capabilities. This, in turn, could enhance America’s standing in the global economic arena and help offset economic vulnerabilities highlighted by figures like Musk.

These newfound resources present an opportunity for the U.S. to challenge China’s dominance in rare earth production, a crucial factor in maintaining technological and economic competitiveness. The advancements in Wyoming, coupled with continued exploration and innovation, may prove instrumental in reshaping the U.S. economy for years to come.