China’s dominance of rare earths supply is a growing concern in the West
- China provides more than 85 per cent of the world’s rare earths and it is home to about two-thirds of the global supply of rare metals and minerals like antimony and baryte, report says
- US and Europe are worried that any disruption to their supply chains for such products would hurt key industries.
Western countries are becoming concerned about their reliance on China for supplies of rare earth elements and other scarce metals and minerals that are essential for the manufacture of electric car batteries, satellites, weapons, wind turbines and solar panels.
China provides more than 85 per cent of the world’s rare earths and is home to about two-thirds of the global supply of scarce metals and minerals like antimony and baryte, according to the Centre for Strategic and International Studies (CSIS).
China dominates solar PV manufacturing and is home to more than 90 per cent of the world’s wafer manufacturing capacity. The CSIS said China had most of the world’s capacity for key components used in lithium-ion battery manufacturing and 80 per cent of global battery cell manufacturing capacity.
The United States and European countries fear that any disruption to their supply chains for such products will hurt key industries.
The US said recently it would rebuild its rare metals supply chain to reduce its dependence on China for the critical metals and rare earth minerals that power its aviation, military and car industries.
David Shinn, a professor at George Washington University’s Elliott School of International Affairs, said the US was trying to better control its supply of critical minerals, including rare earths. The US now controlled about 10 per cent of rare earth production but it used to be a lot more, he said.