China Restricts Rare Earth Technology Exports in Bid to Secure Dominance
China, the world's leading processor of rare earths, has imposed restrictions on the export of technology for the extraction and separation of these critical materials. Rare earths are a group of 17 metals crucial for making magnets used in electric vehicles, wind turbines, and electronics. China's move is seen as an effort to safeguard its dominance, particularly in "heavy rare earths" used in electric vehicle motors, medical devices, and weaponry, where China holds a virtual monopoly on refining.
The ban includes the export of production technology for rare earth metals and alloy materials, as well as technology for producing certain rare earth magnets. China has significantly tightened regulations on the export of various metals in recent times, escalating tensions with Western nations over control of essential minerals. The restrictions aim to preserve national security and public interests.
As Europe and the US seek to reduce their reliance on Chinese rare earths, China has intensified its efforts to control the critical minerals market. The country has mastered the solvent extraction process for refining rare earths, a technology that Western rare earth companies have struggled to develop due to technical complexities and environmental concerns.
China's announcement comes amid Western efforts to develop alternative rare earth processing technologies. Ucore Rare Metals has completed charging a demonstration plant to test its own rare earth processing technology, partially supported by the US Department of Defense. The move signals an acknowledgment of the need for new technologies to reduce dependence on China in critical areas.
It remains unclear how much of China's rare earth technology is exported, as Beijing has restricted such exports for years. The formalization of this restriction could prompt increased efforts in the West to establish heavy rare earth separation capacity outside China. China currently accounts for 99.9% of global heavy rare earth separation, and the impact of the ban is expected to be felt in efforts to establish heavy rare earth division capacity beyond China.