How much of the rare earth market does China control?

In January 2022, China said it was creating a new state-owned enterprise, China Rare Earth Group, a ‘megafirm’ that will control 60–70% of the country’s rare earth production, which amounts to 30–40% of global supply.

What is the main reasoning driving China’s policies on rare earths?

China denies that its rare earth policies are political, discriminatory, or protectionist, but rather, are intended to address environmental concerns in China and to better manage and conserve limited resources.

Why can’t us break China’s monopoly on rare earth metals?

Unfortunately, current market structures, based on the lowest cost of production, can’t overcome China’s dominance in REE because of national strategy, vertical integration and industry subsidies.

Who controls most of the rare earth minerals?

China
China controls most of the world’s mined output of rare earths, a broad group of 17 elements that are used in everything from smartphones to fighter jets, and has a stranglehold over processing.

What was the most valuable item in China to trade?

Horses. China initially mainly traded silk for horses from central Asia. Horses were China’s most prized import. Horses from central Asia were large and swift — good steads and warhorses.

Why does China have a monopoly on rare earths?

China leveraged its lax environmental laws by way of an indirect ecological subsidy in the rare metal industry. However, the turning point came in 2010 when the world realised that China had a crippling monopoly where it could punish any country by controlling the supply of the rare earth metals.

Where does the US get its rare earth metals?

Currently, US companies get the vast majority of their rare earth materials and magnets from China.” The Mountain Pass mine in California, controlled by MP Materials Corp, is the only active rare earths mine in the United States.

Does China control rare earth metals?

China controls most of the world’s mined output of rare earths, a broad group of 17 elements that are used in everything from smartphones to fighter jets, and has a stranglehold over processing.

What country controls rare earth metals?

Where does China get its rare earth metals?

Alongside the Netherlands (9.6 percent), South Korea (5.4 percent), and Italy (3.5 percent), these five countries imported a combined 87.8 percent of China’s rare earth exports. At 42.6 percent of total exports by volume, lanthanum was China’s top rare earth export by a wide margin.

Are China’s rare earths exports declining?

China’s exports of rare earths have been decreasing in recent years – in 2019, the total export volume was down by 12.6 percent year-on-year.

What is China’s new rare earth law?

Through this upcoming regulation, China intends to protect its national interests and industrial security as well as prevent activities, such as illegal mining, destructive mining, unplanned and over-planned production, illegal trading of rare earth products, and destroying the ecological environment, among others. What are rare earths?

How will the draft regulations affect the export of rare earths?

The draft Regulations state the applicability of the Export Control Law (“ECL”) to the export of rare earths, which will affect industries dependent on these exports. Rare earths products will likely have to go through the export approval procedure provided by the ECL.