Exploring Supply Chain Management of Rare Earth Metals in the United States

The reduction in the global supply of rare earth metals (REMs) affects the productionnof important defense equipment in the United States, challenging business leaders to offer viable solutions to address adverse consequences. Guided by the supply and demand theory, this case study explored the capabilities of United States business leaders to manage the global reduction of the supply of REMs from China. Semistructured interviews were used to examine the knowledge and expertise of 20 geographically dispersed U.S. REM business leaders regarding their ability to address the challenge of a U.S. REM supply shortage. Using NVivo software, the interviews were coded into keywords, phrases, and concept categories and themes. The significant theme resulting from the data analysis indicated that the U.S. will confront an economic crisis as a result of a REM supply reduction. Other themes indicated (a) the U.S. REM industry faces financial instability from its inability to predict REM production costs based on increasingly higher REM prices, (b) building international coalitions to counteract China's controlled supply is required, and (c) education is an essential deterrent for preventing further environmental damage. The participants identified specific strategies U.S.-based businesses could use to guarantee a future supply of REM materials such as building international alliances with REM rich nations, and funding research focused on the identification of REM substitutes. The implications of these findings contribute to progressive social change by identifying how a REM supply shortage will affect society economically. Findings from this study engender positive social change by providing information to sector leaders that enhance the understanding of the implications of the supply problem of REMs in the United States.