China’s recent imposition of export controls on rare earth minerals and magnets is a significant blow to the United States. The move limits Washington’s access to these critical materials, which are crucial for manufacturing high-tech products such as computer hard drives, loudspeakers, and medical equipment.
Rare earths, a group of 17 chemically similar elements, are abundant in nature but rare in their pure form. They are used in various applications, including defence technologies, medical devices, and key infrastructure projects. China dominates the global supply chain for these minerals, with the International Energy Agency estimating that it accounts for 61% of production and 92% of processing.
The US is heavily reliant on China’s rare earth exports, importing 70% of its needs between 2020 and 2023. This new restriction could severely impact US defence industries, including F-35 jets, Tomahawk missiles, and Predator drones. Additionally, manufacturers in the US may face production delays and potential shortages due to halted shipments and limited inventories.
The Trump administration has taken steps to address this issue, ordering an investigation into the national security risks posed by the US’ reliance on critical minerals like rare earths. The President aims to reduce dependency on foreign sources and promote domestic production. However, diversifying supply chains and scaling up domestic processing capabilities will require significant investment, technological advancements, and potentially higher costs.
China’s move has exposed vulnerabilities in the global supply chain and highlighted the need for countries to diversify their critical mineral needs. As tensions between Washington and Beijing continue, the US must reassess its strategy for securing access to these essential materials.
Source: https://www.bbc.com/news/articles/c1drqeev36qo