Why in news
China, the world’s top processor of rare earths.
China banned the export of technology to extract and separate the strategic metals.
Rare earth metals overhauled a list of technologies deemed key to national security.
They are a group of 17 chemical elements that are found together in the periodic table.
They are called "rare" because they are not actually rare in the Earth's crust.
But they are difficult to extract and separate from each other.
Rare earth metals are used in a wide variety of products, including magnets, batteries, electronics, and catalysts.
They are becoming increasingly important as the world transitions to a more sustainable economy, as they are used in many green technologies.
Here are some of the most common rare earth metals:
Cerium (Ce)
Lanthanum (La)
Neodymium (Nd)
Praseodymium (Pr)
Samarium (Sm)
Yttrium (Y)
How China Monopolised Rare Earths?
While it's accurate to say China holds a dominant position in the global rare earth market.
China claiming a monopoly might be an oversimplification.
Factors contributing to China's prominence:
Early investment: China began investing heavily in rare earth mining and processing in the 1980s, while other countries were phasing out production due to environmental concerns and high costs.
Lower costs: China benefited from cheap labor, lax environmental regulations, and government subsidies, lowering production costs and undercutting competitors.
Vertical integration: China controls the entire rare earth supply chain, from mining and processing to refining and manufacturing, giving them substantial control over prices and production.
Export restrictions: In the past, China has strategically placed temporary quotas on rare earth exports, causing price hikes and forcing other countries to rely on its supply.
Challenges to China's dominance:
Environmental concerns: China's lax environmental regulations surrounding rare earth extraction have spurred international criticism and domestic environmental issues.
Technological advancements: Other countries are investing in research and development to find alternative sources and more efficient extraction methods, potentially reducing dependence on China.
Geopolitical tensions: Trade tensions and political disputes between China and other countries could lead to disruptions in the supply chain and encourage efforts to diversify sources.
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