CHINA TIGHTENS ITS GRIP ON RARE EARTHS AND GIVES AFRICA AN OPPORTUNITY

China tops the list of countries when measured by the volume of production of REMS, producing in 2023 more than two thirds of the global rare earth mine output.

- JOHN DOBSON

Last week Beijing declared that rare earth metals (REM) in China are the property of the state, warning that “no organisation or person may encroach on or destroy rare-earth resources”. The country’s State Council also announced that from 1 October the government would operate a traceability database to ensure that it has full control over the extraction, use and export of the metals. Why?

First of all, remember that this move follows a growing row between China and the US over the increasing numbers of cheap Chinese electric vehicles starting to flood the market. Last month the European Union announced tariffs of up to 48% on EVs made in China, including those manufactured by MG, Volvo and BYD, in a row over what the EU claims are unfair subsidies from Beijing. This action was the result of a probe launched last year by the European Commission that concluded European competitors were being harmed by Chinese subsidies which allowed manufacturers to keep their costs artificially low. China rejected the claim, arguing that its industry has flourished naturally.

REMs and EVs are inextricably linked, so it’s almost certain that these two events are connected. You can’t make electric cars without the use of many REMs. In fact, you can’t make a huge number of things without REMs. If you are reading this newspaper on a tablet or smart phone, you will be holding up to 16 REMs in your hand. Among many applications, REMs are used to make batteries and control systems in EVs, red lasers in precision guided missiles, signal boosters in trans-oceanic cables which make the internet possible, control rods in nuclear reactors, magnets in wind turbines and are even used in the treatment of lung cancer. The list goes on and on. This is why there is a brutal competition developing between the US, China, Russia and the EU over a small group of REMs on which their economies depend.