The Chinese Communist Party also exploits Xinjiang’s abundant coal reserves to provide subsidized energy that enables mineral processing. Industrial electricity in Xinjiang costs approximately 2.7 cents per kilowatt-hour.
In the U.S., it’s roughly 7.5 cents, and 22 cents in the European Union. Since energy accounts for 40 to 60 percent of processing costs for materials like titanium, magnesium and lithium, this gap creates a structural competitive advantage that Western producers simply cannot match on their own terms.
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