With China exerting its power, race to make rare earth magnets elsewhere begins, Pg 18.

Key Highlights:

• China suspended exports of rare earth magnets six months ago, impacting industries globally.
• The United States and Europe are accelerating efforts to build rare earth magnet factories.
• North America and Europe import nearly 40,000 tons of rare earth magnets annually, mostly from China.
• China produces over 200,000 tons of rare earth magnets annually, dominating global production.
• Automakers and defense contractors in Europe and the United States are most affected by the export restrictions.

Detailed Insights:

• China's control over rare earth magnet supplies has been used as leverage in trade negotiations.
• Rare earth export restrictions have been used to pressure the European Union regarding tariffs on Chinese electric cars.
• The US government and European Union agencies have been concerned about China's dominance in rare earths for several years.
• Gasoline-powered cars use over 40 rare earth magnets in various systems, highlighting the widespread need.
• China refines over 99% of the world’s supply of three kinds of rare earths crucial for heat-resistant magnets.

Key Concepts Involved:

• Rare Earth Magnets: Powerful magnets made from rare earth elements, essential for various industries.
• Supply Chain: A network between a company and its suppliers to produce and distribute a specific product to the final buyer.
• Tariffs: Taxes imposed on imported or exported goods, affecting international trade.