The new power of rare earths, Pg15.

Key Highlights:

• China has increased restrictions on rare earth exports, adding five elements to its control list, effective November 8.
• President Trump threatened 100% tariffs on Chinese exports in retaliation to the restrictions on rare earths.
• China controls over 60% of mined rare earth production and over 90% of processing globally.
• India imported 2,270 tonnes of rare earth elements in 2023-24, with 65% originating from China.

Detailed Insights:

• Rare earth elements are vital for various industries, including electronics, defense, and renewable energy, due to their unique material properties.
• China's dominance in rare earth production stems from a strategic industrial policy initiated in 1987, leading to near-total control over mining and processing.
• The recent export curbs include holmium, erbium, thulium, europium, and ytterbium, along with related magnets and materials, requiring export licenses.
• India's domestic rare earth mining and refining are limited, but the country is exploring seabed mining in the Andaman Sea and establishing rare earth theme parks.
• The US is also seeking to reduce reliance on China by considering stockpiling deep-sea metals and rare earths.

Key Concepts Involved:

• Rare Earth Elements: A set of 17 metallic elements used in various high-tech applications.
• Trade Weaponization: Using trade policies and restrictions as a tool for geopolitical leverage.
• Polymetallic Nodules: Mineral-rich formations on the seabed containing valuable metals, including rare earths.