Tag Archives: Rare Earth Elements

#Beijing’s Export Restrictions: Impact on #US #CriticalMinerals Strategy

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Beijing’s Latest Move Threatens America’s Critical Minerals Strategy

The global race for critical minerals has entered a new and potentially volatile chapter. China has imposed new restrictions on exports of key rare-earth materials to major U.S. companies, directly targeting efforts by Washington to rebuild domestic supply chains for strategically important magnets and advanced technologies.

The decision signals a significant escalation in the ongoing competition between the world’s two largest economies and highlights how critical minerals have become a powerful geopolitical tool.

Why Rare Earths Matter

Rare-earth elements are essential ingredients in a vast array of modern technologies. They are used in:

  • Electric vehicles
  • Wind turbines
  • Military drones
  • Advanced defense systems
  • Artificial intelligence hardware
  • Consumer electronics
  • Industrial machinery

While many countries possess rare-earth deposits, China dominates the global processing and refining industry. It supplies approximately 90% of the world’s light rare earths and refines more than 98% of heavy rare earths—materials that are particularly important for high-performance magnets and advanced technologies.

This dominance has given Beijing considerable leverage over global supply chains.

China’s New Restrictions

China’s Ministry of Commerce announced that ten American companies will face new restrictions on purchasing certain dual-use products from Chinese suppliers. Among the affected organizations are two of the most important players in the U.S. rare-earth sector:

  • MP Materials
  • USA Rare Earth

Both companies are central to the U.S. government’s strategy to reduce dependence on Chinese supplies.

The restrictions cover several critical rare-earth metals, including heavy rare earths such as dysprosium and terbium. These materials are essential for producing heat-resistant magnets used in electric motors, automotive systems, military applications, and industrial equipment.

A Blow to U.S. Supply Chain Ambitions

The timing is particularly significant.

Over the past several years, the U.S. government has invested heavily in rebuilding domestic rare-earth production capabilities. The Department of Defense and other federal agencies have directed hundreds of millions of dollars toward developing mining, refining, and magnet manufacturing infrastructure.

MP Materials operates the Mountain Pass mine in California, the largest rare-earth mining operation in the United States. The company is also constructing magnet manufacturing facilities in Texas designed to serve both commercial and defense customers.

Meanwhile, USA Rare Earth has been rebuilding domestic manufacturing capacity in Oklahoma and pursuing international partnerships to secure alternative supplies of critical minerals.

The new Chinese restrictions create additional obstacles for these efforts by limiting access to the materials needed during the industry’s transition period.

The Dysprosium Challenge

One of the most pressing concerns involves dysprosium, a heavy rare-earth element used to improve magnet performance under high temperatures.

Industry data indicates that Chinese shipments of dysprosium to the United States have effectively stopped since April 2025. The material is crucial for components found in:

  • Power steering systems
  • Braking systems
  • Electric motors
  • Aerospace applications
  • Defense technologies

Manufacturers can partially substitute dysprosium with terbium, but supplies of terbium have also become extremely limited.

Without reliable access to these materials, scaling domestic magnet production becomes significantly more difficult.

Global Concerns Growing

The latest move comes as governments worldwide seek to diversify critical mineral supply chains.

At the recent G7 summit, leaders pledged to reduce dependence on any single supplier and outlined a goal that no more than 60% of rare-earth imports should come from one country by 2030.

However, achieving that objective will be challenging. Building new mines, processing facilities, and refining operations requires years of investment, environmental approvals, technical expertise, and substantial capital.

Even promising projects in Australia, Brazil, Canada, and the United States remain far from matching China’s current production capacity.

Trade Tensions Could Reignite

The restrictions also threaten to reignite trade tensions between Washington and Beijing.

Although previous diplomatic discussions included conversations about maintaining access to critical minerals, progress has been limited. China’s latest action demonstrates that rare-earth exports remain a powerful strategic lever that can be deployed during periods of economic or political disagreement.

For U.S. policymakers, the message is clear: securing resilient supply chains for critical materials has become a national security priority rather than simply an economic objective.

Looking Ahead

China’s decision underscores a broader reality shaping the global economy. Control over critical minerals is increasingly becoming as important as control over energy resources was in previous decades.

As nations compete to secure supplies for electric vehicles, renewable energy, advanced computing, and defense systems, rare earths are likely to remain at the center of geopolitical negotiations and trade disputes.

For American manufacturers, the challenge now is accelerating efforts to develop alternative sources while navigating a market where China continues to hold overwhelming influence.

The outcome of this struggle may help determine not only the future of global trade but also which nations lead the next generation of technological innovation.

This version is optimized for a business, technology, or geopolitics audience and is written to avoid copyright concerns by presenting original analysis and structure rather than reproducing the source article.

Source: The New York Times

Can #Canada and #UnitedStates Mine Enough #RareEarthElements to Meet Future Demand?

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Map showing the distribution of rare earth element deposits and occurrences in North America, highlighting locations in Canada and the United States.

As the world accelerates toward electrification and clean energy, rare earth elements (REEs) have become some of the most strategically important minerals on the planet. They are essential components in electric vehicles, wind turbines, smartphones, computers, advanced defense systems, and countless other technologies that power modern life.

A recent study by researchers at the University of Michigan suggests that North America may have the resources needed to build a more self-reliant rare earth supply chain—provided the right economic and policy conditions are in place.

Growing Demand for Critical Minerals

Global demand for rare earth elements is expected to rise significantly over the coming decades. Researchers estimate that worldwide demand will increase from approximately 91 kilotons in 2024 to 123 kilotons by 2030 and 150 kilotons by 2040.

Today, however, the global rare earth industry remains heavily concentrated. China accounts for roughly 70% of global rare earth mining, while the United States contributes only about 11%. This imbalance has raised concerns about supply chain security, economic competitiveness, and national defense readiness.

Assessing North America’s Resource Potential

The University of Michigan team evaluated 28 rare earth deposits across North America, analyzing factors such as ore tonnage, mineral grade, and total rare earth oxide content. Their findings indicate that North America possesses enough rare earth resources to satisfy U.S. demand for decades.

The challenge is not the availability of resources, but whether those resources can be extracted economically.

Many North American deposits are lower in quality than leading operations in China and Australia. In addition, some deposits contain elements such as thorium, a naturally occurring radioactive material that can increase mining and disposal costs.

Despite these challenges, researchers believe several deposits could support a competitive domestic supply chain, particularly if governments provide targeted support during the industry’s development phase.

Light vs. Heavy Rare Earth Elements

Rare earth elements are typically divided into two categories: light rare earths and heavy rare earths.

Light rare earth elements are more abundant and are widely used in magnets, batteries, electronics, and renewable energy technologies. Heavy rare earth elements are less common but highly valuable because they improve the performance and heat resistance of high-strength magnets.

The study found a geographic advantage across North America:

  • The United States holds substantial deposits of light rare earth elements.
  • Canada possesses many of the region’s most significant heavy rare earth deposits.

This distribution suggests that a coordinated North American strategy could strengthen supply security while leveraging the strengths of both countries.

Why Domestic Mining Matters

Rare earth elements are classified as critical minerals because they support industries vital to economic growth, clean energy, and national security. Supply disruptions can have far-reaching consequences, affecting everything from electric vehicle manufacturing to advanced military technologies.

Historically, the United States mined rare earths at California’s Mountain Pass mine, but much of the industry’s processing capacity eventually shifted overseas. Today, experts argue that rebuilding domestic mining alone is not enough. North America must also develop processing, refining, and manufacturing capabilities to create a fully integrated supply chain.

The Path Forward

The study concludes that North America has the geological resources needed to establish a more resilient rare earth industry. However, success will depend on balancing economic viability, environmental responsibility, and strategic investment.

As demand for electric vehicles, renewable energy systems, and advanced technologies continues to grow, developing a secure domestic supply of rare earth elements could become one of the most important industrial challenges—and opportunities—of the coming decades.

Reliance, Vedanta, Adani: Investing in India’s Rare Earth Future

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A silhouette of India filled with colorful rare earth mineral stones, set against a landscape featuring wind turbines and electric vehicle charging stations, highlighting the theme of sustainable energy.

Indian industrial groups Reliance, Vedanta and Adani have shown interest in developing facilities to process Andhra Pradesh state’s significant reserves of increasingly important rare-earth minerals, according to two sources with knowledge of the matter.

With New Delhi seeking to cut India’s dependence on China for rare earths, the three companies are among about 10 who have expressed interest in setting up rare earth facilities in the southern state, one of the sources said.

Andhra Pradesh holds 211 million metric tons of beach sand mineral resources, including rare earths, across 16 identified coastal deposits, according to a draft document. India has 482.6 million tons of rare earth ore resources, according to the Geological Survey of India.

RARE EARTH AMBITIONS

The interest comes as New Delhi steps up efforts to build domestic rare earth mining, processing and magnet manufacturing capacity, while Andhra Pradesh aims to attract 500 billion rupees ($5.2 billion) in rare earth and titanium investments over the next decade.

The plans were set out in a draft government document.

The Andhra Pradesh government, Reliance Industries Ltd, Vedanta Ltd and Adani Enterprises Ltd did not respond to Reuters emails seeking comment.

Andhra Pradesh was among four states identified in February’s federal budget for the development of rare earth “corridors” covering mining, processing and magnet production.

The initiative followed New Delhi’s approval in November of a 73 billion rupee programme to support rare earth magnet manufacturing.

Rare earth elements are essential for permanent magnets used in applications such as electric vehicle motors. While India holds substantial rare earth reserves, it lacks industrial-scale facilities capable of processing the minerals to high purity levels.

CAPITAL INCENTIVES AND OTHER MEASURES

Andhra Pradesh plans to issue tenders for rare earth facilities after securing cabinet approval for its rare earth corridor policy, which is expected within a month, the sources said.

The state also plans to offer capital-linked incentives and additional benefits for projects with investments of 10 billion rupees or more, the sources said.

Andhra Pradesh has been courting large-scale investments, attracting companies including Google and ArcelorMittal Nippon Steel, and aims to secure $1 trillion in investment commitments by 2029, a state minister told Reuters last November.

‘#India not realising potential of #RareEarth industry’

October 19, 2016 

‘#India not realising potential of #RareEarth industry’ | A Blog for Browsing Mining, Mineral Processing, and Metals Info

Source: MSN

#China’s Zero-Tariff Policy Boosts #African Trade

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Map illustrating trade routes between China and Africa, highlighting key cities and connectivity. Points of interest include trading hubs and growth statistics. Emphasizes partnership and infrastructure development.

As Chinese and African citizens increasingly reap the mutual benefits of trade, America is losing out by heading in the opposite direction.

Source: Opinion; The Washington Post

The State Council; The People Republic of China.

China has expanded its zero-tariff policy to include all 53 African nations with which it maintains diplomatic relations, opening new opportunities for African exports and industrial development at a time when global trade is increasingly affected by protectionist policies.

The policy took effect immediately, with a shipment of 24 tonnes of South African apples becoming the first African products to enter China under the expanded tariff-free arrangement after clearing customs in Shenzhen.

Previously, China had already eliminated tariffs on all product categories from 33 of Africa’s least-developed countries starting December 2024. The latest expansion extends similar benefits to 20 additional African economies, including Kenya, Egypt, and Nigeria. Under the arrangement, these countries will enjoy preferential zero-tariff access for an initial two-year period while China works toward establishing long-term trade agreements through the China-Africa Economic Partnership for Shared Development framework.

According to China’s Ministry of Commerce, the measure will improve the competitiveness of African exports such as cocoa from Côte d’Ivoire and Ghana, Kenyan coffee and avocados, and South African citrus fruits and wine, which previously faced tariffs ranging from 8% to 30%. The ministry also believes the initiative will encourage greater investment in Africa by attracting capital, technology, equipment, and management expertise to support local processing industries. This, in turn, is expected to create a more balanced and sustainable trade relationship between China and Africa.

The decision has been widely welcomed as a strong signal of China’s commitment to economic openness during a period when many countries are adopting more restrictive trade policies. African Union Commission Chairperson Mahmoud Ali Youssouf described the move as both timely and beneficial for Africa, noting that the continent continues to face numerous global challenges, including rising protectionism. He expressed appreciation for what he called a gesture of solidarity from China.

China remains Africa’s largest trading partner. Bilateral trade reached a record US$348 billion in 2025, with Chinese imports from Africa totaling US$123 billion, representing year-on-year growth of 5.4%.

Experts believe the impact of the policy will extend beyond trade. Scholars from institutions including Tsinghua University and University of International Business and Economics argue that tariff-free access could encourage multinational companies to establish manufacturing and processing facilities in Africa, supporting industrialization and helping the continent move beyond its traditional role as a supplier of raw materials.

The initiative also aligns with China’s broader economic strategy of expanding international openness and improving trade and investment cooperation through 2030. Analysts suggest that Chinese consumers will benefit as well, gaining access to a wider range of competitively priced African products. Businesses have already begun preparing to increase imports, including Kenyan tea processors that expect significantly lower costs under the new tariff regime.

Overall, the expanded zero-tariff policy is expected to strengthen China-Africa economic ties, boost African exports, attract investment, and support long-term industrial growth across the continent.

Source: The State Council; The People Republic of China.

#EU seeks to rebalance trade relationship with #China

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The European Union must rebalance its trade relationship with China, EU officials said Friday, as Brussels sharpens its focus on economic ties with Beijing.

The EU’s trade deficit with China reached approximately €360 billion ($418 billion) last year, increasing pressure within the bloc to address the growing imbalance.

EU officials emphasized that while openness to trade remains a core European value, there is a clear need to create a fairer and more balanced trading relationship with China.

The European Commission is expected to hold discussions next week on how the 27-member bloc should approach China to ensure more equal trade conditions. A potential visit by China’s commerce minister to Brussels later next month is also being considered.

European leaders are set to further discuss EU-China trade relations during a summit in Brussels on June 18 and 19.

Trade ministers meeting in Brussels highlighted the importance of maintaining strong economic ties with China, while also stressing the need to reduce strategic dependencies and strengthen Europe’s economic resilience.

Particular concern has centered on rare earth minerals after China imposed export restrictions last year, exposing Europe’s heavy reliance on Chinese supplies. China remains the world’s leading producer of rare earth elements.

In response to ongoing trade tensions, the EU has introduced measures aimed at protecting its market from what it considers unfair Chinese competition, including additional levies on small parcels imported from China.

Source: CANADIAN AFFAIRS

#CriticalMetals Inks 15-Year #Greenland #RareEarth Deal With #REalloys

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Critical Metals said it has ⁠signed a 15-year binding offtake agreement with ​REalloys for rare earth concentrate from its Tanbreez project ‌in Greenland.

Under the agreement, ‌REalloys will buy 15% of annual ⁠rare earth ⁠concentrate production from the project, which is one ​of the world’s largest known heavy rare earth deposits.

• ​The agreement formalizes and expands on a non-binding ⁠deal signed ⁠by the companies ⁠last ​October.

• It also follows Greenland’s approval in April for Critical ​Metals to ⁠increase its ownership in the project to 92.5%.

• Critical Metals said the deal strengthens the commercial outlook for the Tanbreez project as it moves ⁠toward production.

• REalloys will receive priority rights to concentrate containing ⁠higher levels of the critical heavy rare earth elements, dysprosium and terbium, along with a right of first refusal over additional volumes.

• Deliveries will be made from the Tanbreez port in southern Greenland, with pricing linked to international rare earth oxide benchmarks.

• United States ⁠and its allies have stepped up efforts to secure supplies of critical minerals outside China, which dominates much of the global rare earth ​processing industry.

Source: U.S.News

The #Pentagon Wants 300,000 #Drones But #China Controls The Magnets

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A modern manufacturing facility showcasing equipment for extracting rare earth elements, with workers in safety gear preparing for drone production. The background features a sunset view with a city skyline.

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The Pentagon recently placed the largest drone order in American history — 30,000 one-way attack drones, with plans to scale past 300,000 by early 2028. There’s one major problem: every one of those drones runs on a rare earth magnet. And according to Goldman Sachs, roughly 98% of the world’s magnets are manufactured in China.

That’s the dilemma REalloys has spent years building to solve. The company holds the only fully non-Chinese “mine to magnet” heavy rare earth supply chain in North America — from processed metals to finished alloys to the magnet-ready inputs that defense contractors actually need.

Read more at: The Globe and Mail

#US Needs Another Decade to Fix $1.2 Trillion #RareEarth Crisis

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A digital artwork depicting a split scene featuring the White House on the left and a futuristic city skyline on the right, with heavy text overlay discussing heavy rare earth elements dysprosium and terbium, alongside a theme of contrasting colors and visuals.

For the past year, President Donald Trump has waged a campaign to break America’s dependence on the rare earths that remain Chinese leader Xi Jinping’s unbeatable leverage over the global economy.

From White House meetings to boardroom negotiations, US officials and their allies around the world have poured billions of dollars into mining, refining and other industrial facilities. While Beijing’s might was amassed over decades, Trump pledged last November that ending US reliance on rare earths would take just 18 months.

Yet the ones that matter most remain out of reach.

China’s chokehold is likely to loosen on some of the more abundant light rare earths used in a huge proportion of consumer electronics by the end of this decade. But when it comes to some of the key so-called heavy rare earths — essential for high-performance magnets and military technologies and targeted by China’s export curbs last year — Beijing’s dominance will likely persist longer, until at least the mid-2030s, according to projections and data supplied to Bloomberg from three critical mineral consultancies.

For two of the most important elements, dysprosium and terbium, countries outside of China will still meet less than a fifth of demand by 2035, according to data from one of those consultancies, McKinsey & Co. CRU Group and Benchmark Mineral Intelligence offered similar projections and interpretations.

Read more at: Bloomberg

#Japan tackles challenges of seafloor #RareEarth mining, eyeing economic security

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An underwater scene featuring a deep-sea mining vehicle near Japan, with the Japanese flag in the background. The text highlights Japan's advancements in deep-sea technology, referencing a depth of 6,000 meters.

Japan’s government is taking on the challenge of mining critical minerals, including rare earths, from the seabed around Minamitorishima, a remote Japanese island in the Pacific, with an eye to realizing domestic rare earth production in the future.

Securing such minerals is a matter of vital importance for Japan, which is poor in natural resources. In February of this year, the country succeeded in a test collection of rare earth-bearing mud at a depth of 6,000 meters below sea level near the island, which is in the Tokyo village of Ogasawara.

While commercialization is being targeted for 2028 at the earliest, the government faces the challenge of striking a balance between the importance of the mining for economic security and its economic viability.

Rich mineral resources are believed to lie in the ocean floor around Minamitorishima. Cobalt-rich crusts and manganese nodules have been found there. Cobalt and manganese are used for electric vehicle batteries.

Furthermore, the presence of mud containing scarce and expensive heavy rare earth elements, such as neodymium and dysprosium, has also been confirmed, and development is being promoted under government leadership. Neodymium and dysprosium are needed for high-performance motors used in EVs and wind power generators.

“We have promoted technical development over the years to make the world’s first attempt” at deep-sea rare earth mining, said Shoichi Ishii, an official at the Cabinet Office who is leading the rare earth-rich mud development project.

Read more at: Japan Times

#Norway’s government takes over planning for #Europe’s largest #RareEarthMinerals deposit

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Illustration of Norway featuring flags of Norway and the European Union, with the text 'Rare Earth Elements' overlaying an image of a mining site.

OSLO, April 22 (Reuters) – Norway will take ​over planning for the Fen rare earth deposit – Europe’s largest – to ‌speed up development after a resource upgrade nearly doubled its estimated size, the government said on Wednesday.

Fen was estimated last month to hold 15.9 million metric tons ​of rare earth oxide in indicated and inferred resources, 81% ​more than a 2024 estimate, the project’s developer said at ⁠the time.

Europe has no operating rare earth mines, and development ​of the southern Norway project would support the region’s push to reduce ​reliance on dominant producer China.

“The Fen field could be of major significance for Telemark, Norway and Europe’s supply security and competitiveness,” Prime Minister Jonas Gahr Stoere said ​in a statement. Telemark is the region where Fen is located.

“To ​ensure future access to critical minerals, it is important to increase production both ‌in ⁠Norway and in other countries with which we cooperate in terms of security.”

About 19% of the oxides are neodymium and praseodymium (NdPr), key materials used in permanent magnets for electric vehicles, wind turbines, electronics and defence ​applications.

The government said ​it had stepped ⁠in at the request of the local authority, citing the risk of land-use disputes and the need ​to balance competing national interests.

As elsewhere in Europe, infrastructure ​projects ⁠in Norway – including onshore wind farms – have faced opposition from environmental and agricultural interests, delaying development.

Rare Earths Norway, which is developing the project, has ⁠said ​it expects production to start in late ​2031, with output of 800 tons of NdPr by 2032, equivalent to about 5% of ​European Union demand.

Reuters

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