In a surprise move, China announced a ban on the export of rare earth processing technology, sparking global concern. The move would particularly affect “heavy rare earths” important for electric vehicle engines, medical devices and weapons, where China has a virtual monopoly on refining.
The Wake Up Cry: Static bias in question
Warns Nathan Pikarczyk, co-founder of geopolitical consulting firm Horizon Advisory: «This should be a warning that dependence on China in any part of the value chain is not sustainable.» The move reflects China's growing concern about its dependence on global rare earths.
List of Prohibited and Restricted Technologies: National Security or Public Interest?
China's Ministry of Commerce last December sought public comment on adding the technology to its “list of prohibited and restricted technologies for export.” The stated purpose of the list is to protect national security and public interest.
Escalation of tensions: «China has significantly tightened rules for exporting many metals this year in an escalating battle with the West over control of key minerals.» This includes introducing export permits for products used in the production of chips and other critical products.
The Struggle West: The Race to Break Away from Chinese Rare Earths
China accounts for nearly 90% of global refined rare earth productionIt retained its monopoly due to its mastery of the solvent extraction process, a technological capability that Western companies struggled to match due to technical difficulties and environmental concerns.
The Western Challenge: «New technologies are essential to break Chinese control in these key areas,” says Ucore Rare Metals CEO Pat Ryan, whose company has just finished operating a demonstration plant to test its own rare earth processing technology.
Actual impact or formalization of existing reality?
While it is unclear to what extent China exports its rare earth technology, some experts argue that the ban formalizes what has long been known. Constantine Karaiannopoulos, former CEO of Neo Performance Materials, notes:: «This statement simply formalizes what everyone knows.«
Chinese monopoly: «China currently extracts 99.9% of the world's heavy rare earths,” according to consulting firm Benchmark Mineral Intelligence (PMI). Western processing capacity is largely focused on “light” rare earths, which could create difficulties in establishing heavy rare earth separation capabilities outside of China.
