The Chinese government has long been exerting control over the export of rare earths, a group of metals crucial for products like semiconductors and light. In the ongoing trade war with the US, China is taking further steps to restrict the market for these metals, potentially impacting American manufacturing and military capabilities. So, why are rare earths so important?
What are rare earths?
Rare earths consist of 17 types of metals across the periodic table, essential for various industries such as technology, energy, and transportation. Names like terbium, praseodymium, and dysprosium are important ingredients in advanced technologies.
These metals can be categorized into heavy and light rare earths, with heavy ones being rarer and selling in smaller quantities. Light rare earths like neodymium and praseodymium are crucial for creating magnets.
What are they used for?
Rare earths have diverse applications, from semiconductor chips powering AI to electric vehicle motors and military equipment. They also enhance heat resistance in products like magnets, glass, lights, and batteries, making them valuable for industries.
Some rare earths possess unique chemical properties that make them ideal for producing high-quality magnets, glass, lights, and batteries. Magnets made from rare earths are exceptionally powerful and essential for electric vehicles.
Does the US produce rare earths?
The US has only one operational rare earth mine in Mountain Pass, California, contributing about 15% to the global market. In the past, the US was a significant rare earth producer, but its production declined over the years compared to China.
Where do rare earths come from?
Rare earths are mined from rock deposits, with China dominating nearly 70% of the market. China’s control over rare earths’ production and export has geopolitical implications, impacting various industries worldwide.
What will the impact of China’s restrictions on rare earths?
If China restricts rare earth exports, American sectors like automotive may face production halts. The US military could also be impacted, leading to shortages of essential equipment like drones and missiles. Tech giants like Nvidia and Apple could also feel the effects.
Many rare earth mining businesses in China have been under private or foreign ownership, but the government’s efforts to consolidate the industry could lead to complete control over manufacturing and exports.
Source: www.nytimes.com
