Wed. May 29th, 2024

China has banned the export of rare earth extraction, separation, and production technologies, as well as technology for preparing rare earth magnets. The move is said to be partially aimed at protecting national security. China is the world’s top miner and processor of rare earths, which are widely used in electric vehicles, renewable energy, and other technologies.

China’s decision to ban the export of rare earth processing technologies is significant for several reasons:

  • Rare earths are crucial for many high-tech industries, including electric vehicles, renewable energy, and electronics. By restricting the export of processing technologies, China could gain more control over the global supply chain for rare earths.
  • China has a monopoly on rare earth production, accounting for over 80% of global output. By banning the export of processing technologies, China can ensure that it remains the dominant player in the rare earth market.
  • The ban on rare earth technology exports is a measure to protect national security. Rare earths are not only important for civilian applications but also have military uses. By keeping the processing technologies within its borders, China can prevent other countries from gaining access to these critical materials.
  • The move is likely to have a significant impact on the global rare earth market. China’s dominance in rare earth production has already led to concerns about supply chain vulnerabilities. By restricting the export of processing technologies, China could further tighten its grip on the market and potentially drive up prices.
  • Other countries, particularly the United States, have been looking for ways to reduce their dependence on Chinese rare earths. The ban on technology exports could accelerate efforts to develop alternative sources of rare earths or to develop new processing technologies.

Overall, China’s decision to ban the export of rare earth processing technologies is a significant development that could have far-reaching implications for the global rare earth market. The move allows China to maintain its dominance in the industry while also protecting its national security interests. However, it could also lead to greater efforts by other countries to diversify their rare earth supply chains and reduce dependence on China.

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