The rise of a great power: starting with military industry

Chapter 129 Rare earth prices increased tenfold! ? Worth it! (Subscribe for monthly tickets)

Panshan Machinery Factory has invested more than 500 million RMB to date!

In just over a year, Panshan Machinery Factory has invested more than 1 billion RMB, which is the only case in the country!
Up to now, Panshan Machinery Factory nominally has more than 4 employees and more than 20 employees’ families!
This is the largest military factory in the entire southwest!
In terms of investment scale, number of employees, land area, and production scale, Panshan Machinery Factory is undoubtedly the largest military factory in the southwest.

It can even be said to be a super large military factory!

If Panshan Machinery Factory had not just been upgraded to a large military factory, Liu Tao's administrative level might have been raised two or three levels.

"Leader, how is the rare earth issue going?" Liu Tao settled the settlement issue and asked about the things he was concerned about.

Rare earth is a good thing, known as the "vitamin of industry". It has irreplaceable excellent magnetic, optical and electrical properties, and plays a huge role in improving product performance, increasing product variety and improving production efficiency.

It is no exaggeration to say that rare earths will become an important element in improving product structure, increasing scientific and technological content, and promoting technological progress in the industry. They will be widely used in metallurgy, military, petrochemicals, glass and ceramics, agriculture, new materials and other fields.

When developing anti-aircraft guns, self-propelled anti-aircraft guns, and tanks, rare earth elements need to be added to many materials.

The last time Wang Baoguo brought a group of experts to Panshan Machinery Factory, he formally reported to Wang Baoguo and suggested that rare earths be included in the scope of strategic material control.

"It has been decided. Several departments have jointly issued a document to include rare earths in the scope of strategic control and set up a company specifically for the mining of rare earths." Wang Baoguo said: "The technology you provided last time has attracted attention from all sides, but there is one thing, your purchase quantity cannot be less."

Liu Tao laughed when he heard that.

In the military field, rare earths are known as "industrial gold" because they have excellent optical, electromagnetic and other physical properties and can be combined with other materials to form a wide variety of new materials with different properties, which can greatly improve the quality and performance of other products.

First of all, the addition of rare earths can greatly improve the tactical performance of steel, aluminum alloys, magnesium alloys, and titanium alloys used to manufacture tanks, aircraft, and missiles.

In addition, rare earths can also be used as lubricants in many high-tech industries such as electronics, lasers, nuclear industry, and superconductivity.

Not to mention other things, the materials for this time's self-propelled anti-aircraft guns and tanks require a lot of rare earths, such as engine materials, armor materials, and smoothbore gun casting materials.

Although rare earth elements account for a small proportion of the material, they are crucial.

Otherwise, with China's current industrial level, it is impossible to produce a 1500-horsepower diesel engine, let alone armor and gun barrels with high performance.

Not to mention, some special bullets also need to add rare earth elements.

And rare earth elements will also be needed to build computers in the future.

There is no doubt that rare earths will be essential materials for the IT industry.

In his previous life, Liu Tao's heart bled when he saw rare earths being sold at such a low price.

It is said that the Middle East has oil and China has rare earths.

The Middle East makes a lot of money from oil, and white robes and big beards have become synonymous with the rich.

As a result, China sold rare earths at a very low price, which is so sad and makes people cry.

There is a chance to change this trend in this life, so he will naturally seize it.

As for the current production of rare earths, Liu Tao also made a special effort to find out about it. From 1956 to 1966, it was in the experimental research stage, during which the main focus was on studying the process technology for preparing rare earth metals; from 1966 to 1980, it was the industrialization stage of rare earth pyrometallurgical technology, during which the main focus was on establishing a pilot plant using the process technology for experimental research.

Therefore, the annual rare earth production in the country is actually very low, not even enough to meet the manufacturing needs of self-propelled anti-aircraft guns and tanks, let alone computer manufacturing.

"Boss, Panshan Machinery Factory will take care of all the rare earth production!" Liu Tao said with a smile, "Five years, Panshan Machinery Factory will take all the production for five years, and the price will be ten times the current price!"

The current price of rare earths is about RMB 10 per kilogram, and only RMB 1 per ton.

The estimated rare earth production this year is 20 tons, which is only 20 RMB at the current price!

Even if he increased the price tenfold, he would only need to spend 200 million RMB!

The money earned from selling a self-propelled anti-aircraft gun is more than 200 million RMB!

“Even if you want payment in US dollars, there is no problem!” Liu Tao emphasized.

Wang Baoguo was quite surprised. "You attach so much importance to rare earths?"

"Yes!" Liu Tao nodded: "No matter how much we value it, it is not too much, leader. Even if the price of rare earths increases a hundred times or a thousand times, it is worth it!"

Wang Baoguo couldn't help but be moved.

To be honest, even when Liu Tao had told him at the Panshan Machinery Factory that he hoped to include rare earths in the category of national strategic controlled materials, he didn't really care.

Rare earths, rare earths, just sound like soil. It’s good enough that the soil can be sold for money, how precious can it be?

But now Liu Tao actually said that it would be worth it even if the price of rare earths increased a thousand times, which shows that rare earths are indeed very valuable in Liu Tao's eyes.

"Comrade Liu Tao, is this rare earth really so valuable?" Wang Baoguo couldn't help but look serious.

Liu Tao nodded: "The value will only be higher, you will know when you become a leader later!"

He will use practical actions to prove the value of rare earths.

The manufacturing materials of self-propelled anti-aircraft guns, tanks, missiles and even aircraft require the addition of rare earth elements. He doesn't believe that the country will not pay attention to it.

As for whether his pushing up of rare earth prices would lead to overseas countries mining rare earths and developing rare earth industries themselves, Liu Tao was not worried at all, because China was far ahead in terms of proven rare earth reserves. Under the same circumstances, China would definitely be able to maximize its profits.

Moreover, the mining and production process of rare earths is highly polluting and costly, and has high technical requirements. Not every country can mine and produce rare earths.

"I'd like to take a look. Rare earth is just a kind of soil. Could it be that soil is so valuable?" Wang Baoguo took a sip of water from the enamel teacup. He couldn't understand how soil, which is inexhaustible, could be so valuable.

Liu Zhenbang also looked at his son strangely, "That's right, soil is available all over the world, how can it be so mysterious that you treat it like a treasure."

Liu Tao was stunned for a moment, then shook his head with a wry smile.

After thinking about it, he felt relieved. He could only say that the name "rare earth" was too misleading. For those who didn't understand it, the first impression would be that it was just earth. No matter how valuable earth was, it was not that high.

It is estimated that in the last life, the country did not attach much importance to rare earths, which led to disorderly mining and vicious competition, causing the price of rare earths to fall all the way. It is obviously gold but it is sold at a bargain price. It is very likely because the leaders also think that rare earths are just a kind of soil. It is good enough if someone buys it, but they still want to sell it at a high price! ?

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(End of this chapter)