US-backed rare earth rivals clash over alleged technology theft - FT中文网
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US-backed rare earth rivals clash over alleged technology theft

Legal battle erupts between mining companies supported by Trump administration to break dependence on China
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{"text":[[{"start":8.2,"text":"A leading US rare earths producer has filed a lawsuit accusing a domestic rival of “stealing” its technology, setting up a battle between two mining groups that have won backing from the Trump administration. "}],[{"start":21.25,"text":"In the lawsuit, MP Materials alleged USA Rare Earth stole technology developed by MP for its permanent magnets, which go into everything from phones to electric vehicles and fighter jets. "}],[{"start":33.8,"text":"“USA Rare Earth has repeatedly failed to meet its commercial and performance targets and is now resorting to stealing technology to dig itself out,” MP said in the complaint, which was filed in Texas last week. "}],[{"start":46.099999999999994,"text":"USA Rare Earth said: “MP Materials’ complaint has misrepresented our company, our culture, and our people, and we will defend ourselves vigorously.”"}],[{"start":56.24999999999999,"text":"The two companies are at the forefront of the Trump administration’s efforts to develop a domestic supply chain for the mining and production of rare earths that go into magnets, in its effort to break the dependency of the US on China for the materials. "}],[{"start":70.64999999999999,"text":"The industry has captured western policymakers’ attention in the context of an escalating race for critical minerals and export controls imposed by Beijing on a range of crucial materials including rare earths. "}],[{"start":83.6,"text":"MP Materials won a deal with the US government last year in which the Trump administration agreed to take a minority ownership stake in the miner and guarantee a minimum price for some of its products. "}],[{"start":94.94999999999999,"text":"USA Rare Earth, which until recently had no revenues, secured $1.6bn in conditional funding this year from the government to help finance its planned mine in Texas and a magnet factory in Oklahoma. "}],[{"start":109.44999999999999,"text":"Such backing is vital, given the risk that Chinese rivals will flood the market and drive down prices, experts say. "}],[{"start":115.99999999999999,"text":"At the centre of the lawsuit is technology that MP said was unlawfully shared with USA Rare Earth by a former employee. "}],[{"start":124.04999999999998,"text":"MP uses a proprietary technology to improve its magnets’ so-called “coercivity”, or resistance to demagnetisation. "}],[{"start":132.74999999999997,"text":"That technology was the product of “years” of work and “millions of dollars” of investment, said the complaint. "}],[{"start":139.34999999999997,"text":"A former MP employee who joined USA Rare Earth last year “disclosed the grain boundary diffusion formula” to his new employer, the complaint alleged. The employee did not respond to a LinkedIn message seeking comment."}],[{"start":153.94999999999996,"text":"“USA Rare Earth has exhibited a pattern of recruiting employees from other companies and then using those employees to misappropriate trade secrets,” MP alleged."}],[{"start":165.64999999999995,"text":"While USA Rare Earth has won US government backing, it is yet to mine rare earths or produce magnets commercially. Its planned mine is in the early stages, although the company has said it was targeting commercial-scale mining in 2028 as part of a plan to develop a “mine-to-magnet value chain” decoupled from China."}],[{"start":186.84999999999994,"text":"MP Materials has signed a deal with General Motors to supply magnets, and the carmaker is in the process of testing the materials ahead of approving them for its use."}],[{"start":196.49999999999994,"text":"Dealmaking in the rare earths sector has accelerated in recent months as western hopefuls race to scale up and secure the benefits of being among the first to develop businesses that span mining, processing and magnet making."}],[{"start":217.69999999999993,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779935439_6210.mp3"}

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