Articolo a cura di Giorgia Alessi
What Are Rare Earth Metals and Why Are They Important?
Rare earth elements (REEs) comprise a group of 17 metals integral to modern technology, defense systems, and renewable energy solutions. Despite their name, these elements are relatively abundant in the Earth’s crust; however, their extraction and refinement are challenging due to their dispersed nature.
These metals are indispensable in various high-tech applications:
• Neodymium and Dysprosium: Crucial for manufacturing high-performance magnets used in electric vehicles (EVs), wind turbines, and advanced electronics.
• Lanthanum: A key component in hybrid vehicle batteries and camera lenses.
• Yttrium, Europium, and Terbium: Essential for producing vibrant colors in LED screens and energy-efficient lighting.
Beyond consumer electronics, REEs play a vital role in national security, as they are integral to missile guidance systems, jet engines, and satellite communications. As global demand for technology and green energy solutions grows, the strategic significance of these elements continues to rise, particularly in constructing solar panels and other renewable energy technologies.
China’s Dominance
China currently controls a significant share of the global rare earth elements (REE) market, both in production and refining capacity. Over the past few decades, it has strategically positioned itself as the leader in rare earth mining and processing, accounting for approximately 60-70% of global production and nearly 90% of refining capacity.
This dominance is no accident but rather the result of deliberate policy decisions, substantial investments, and aggressive market control.
China’s rise in the rare earth industry dates back to the 1980s when Deng Xiaoping famously stated, “The Middle East has oil; China has rare earths.” Recognizing the strategic value of these metals, the Chinese government heavily subsidized mining and processing industries.
Lax environmental regulations and low labor costs further provided China with a competitive edge over other nations. Unlike other countries, China controls the refining and processing stages – the most technically challenging and environmentally hazardous parts of the supply chain.
International Implications
China’s control over rare earth supply has granted it significant geopolitical leverage. The country has strategically restricted exports at key moments to assert its dominance.
One of the most notable instances of China leveraging its rare earth dominance occurred in 2010, when it imposed export restrictions on Japan following a territorial dispute over the Senkaku/Diaoyu Islands. This move led to a sharp increase in global rare earth prices and highlighted the world’s dependence on Chinese supply.
More recently, in response to U.S. restrictions on advanced computer chips and foreign investment in Chinese technology, China has imposed new export controls on gallium and germanium, metals crucial for semiconductor manufacturing. This escalation demonstrates Beijing’s willingness to use its dominance in key materials as a countermeasure in economic and technological disputes.
Conclusion
The global reliance on China for rare earth elements raises concerns about supply chain vulnerabilities, economic dependencies, and geopolitical risks. As demand for these critical materials continues to increase, countries worldwide are seeking ways to diversify supply chains, invest in domestic production, and develop alternative technologies to reduce dependence on China. Addressing these challenges will be crucial for ensuring a stable and sustainable rare earth supply in the future.
Appendix
https://www.forbes.com/sites/miltonezrati/2023/12/11/how-much-control-does-china-have over-rare-earth-elements/
https://www.zimtu.com/chinas-rare-earth-dominance-and-what-it-means-for-the world/#:~:text=Over%20the%20past%20few%20decades,nearly%2090%25%20of%20refini ng%20capacity.