China Strengthens Protective Measures for Strategic Metals
China, as the world’s leading rare earth processor, has taken another significant step in safeguarding its dominance in strategic metals by imposing a ban on the export of technology utilized in the extraction and separation of these essential resources. The country’s commerce ministry initiated public consultation in December regarding the possible inclusion of this technology in its “Catalogue of Technologies Prohibited and Restricted from Export.” Additionally, China has prohibited the export of production technology for rare earth metals and alloy materials, as well as technology associated with the preparation of certain rare earth magnets. The goals outlined in the catalogue encompass safeguarding national security and public interest.
China Intensifies Export Regulations in a Global Battle for Critical Minerals
This year, China has substantially tightened its export regulations governing various metals, further fueling its ongoing conflict with Western nations over control of critical minerals. In August, export permits were implemented for gallium and germanium, fundamental chipmaking materials, followed by similar requirements for several types of graphite since December 1. Meanwhile, Europe and the United States are actively seeking to reduce their reliance on China, which currently accounts for 90% of global refined rare earth output. Rare earths, a collection of 17 metals, are indispensable in the production of magnets utilized in electric vehicles, wind turbines, and electronics. While China has successfully mastered the solvent extraction process to refine these strategic minerals, Western companies have encountered difficulties in deploying this technology due to technical complexities and concerns about pollution.
Impact on Rare Earth Technology Export
The extent to which China is presently exporting rare earth extraction technology remains unclear.