Photo by NASA on Unsplash
Exporting Rare-Earth Tech Stopped by China
December 22, 2023
China plans to restrict the export of certain rare-earth technologies, creating potential challenges for the U.S. and other Western nations to strengthen their supply of these strategic raw materials. This move comes as global competitors strive to decrease their reliance on China-produced materials.
China’s new regulations are not directed toward rare-earth product shipments, but they aim to impede the growth of the industry outside its borders. China holds a significant share of the global supply, especially in light and heavy rare earths, which are used in various products, including wind turbines, military equipment, and electric vehicles.
Until recently, there have been hardly any rare-earth refineries outside China, providing Chinese companies and researchers with significant technological and practical advantages in extracting and processing rare earths. Conversely, expertise elsewhere has not kept pace.
In some instances, China is the only known supplier, holding 85% of the global refined supply of light rare earths and a 100% share of heavy rare earths. These critical metals are receiving increased attention as Western countries regard supplies as a national security issue, particularly with the escalating global energy transition amplifying concerns of possible future deficits.
The U.S. is working to break China’s monopoly over mineral flows, with key regulations in President Joe Biden’s climate legislation aiming to boost domestic supply or sourcing from allied nations. In response, China has imposed export restrictions on gallium, germanium, and graphite.
China’s recent move highlights the potential technological challenges that Western producers could face in replicating refining processes that China has perfected. Particularly, as there have been hardly any rare-earth refineries outside China until recently.
The global control of China over the rare-earths market has been a concern since 2010 when it imposed stringent export restrictions. Despite the eventual overturn of these measures through the World Trade Organization, concerns about its dominance have persisted. China was responsible for over two-thirds of mined rare earths last year and controls the supply of rare-earth magnets, a primary component used in manufactured goods.
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