China digs in on ‘rare earth’, commands global market, Pg7

Key Highlights:

• China's Ministry of Industry and Information Technology is tightening control over rare earth mining and processing through new interim measures.
• China holds nearly half of the world's rare earth reserves and contributes over 60% of global production.
• In April, China imposed export restrictions on seven rare earth elements, impacting the U.S. and other nations.
• India relies on China for over 75% of its rare earth imports since 2021.
• China leads in rare earth research, contributing nearly 30% of all published papers.

Detailed Insights:

• Rare earth elements (REEs) are vital for clean energy technologies, defense applications, and high-tech devices.
• China dominates the rare earth value chain, possessing around 92% of global refining capacity.
• The U.S. is the second-largest importer of Chinese rare earths, highlighting its dependence on the Chinese supply.
• China has prohibited the export of tools and methods used to extract and separate rare earths, and banned the export of processing technology.
• China has significantly increased funding for mineral exploration, allocating about $14 billion annually since 2022.

Key Concepts Involved:

• Rare Earth Elements (REEs): A set of 17 metallic elements crucial for various modern technologies.
• Neodymium-iron-boron (NdFeB) magnets: Strong permanent magnets essential for clean energy and other applications.
• Export Restrictions: Government-imposed limitations on the quantity or type of goods that can be exported.