A Chinese rare earth mine in Bayan Obo, Inner Mongolia. Photo: Bert van Dijk/Moment Editorial
China is being accused of «arming» its hold on rare earths needed for wind turbines and electric vehicles amid reports that it is preparing an export ban on key technologies.
Beijing is reportedly making plans to block exports of technologies needed to process and magnetize metals, raising the threat of shortages in the West given China's dominance of the market.
Jack Richardson, a fellow at the Geostrategy Council, said: “The government should be very concerned.
“China has a strong position in the global economy, built up since the 1980s. It aims to capture the cleantech market, as it does in other sectors such as steel. We need to join the Americans, the Japanese and other countries and work together to weaken the influence of China.”
Paul Atherly, chairman of British rare earth refinery developer Pensana, said: “This represents a seismic shift from China's previous stance and brings the outright export ban one step closer.
“China has said it will never impose export restrictions on rare earths after 2011. This announcement appears to be a clear warning of its readiness to use its dominance in rare earths as a weapon.»
Brian Menell, chairman of critical metals investment firm TechMet, said: “The fact that they can use these weapons is very disturbing. This indicates China's growing self-confidence on the world stage and its feeling that they can play these games.»
Rare earth metals are found all over the world…
Rare earth metals are a group like neodymium and dysprosium that are used in high technology, such as making permanent magnets that help wind turbines run.
Despite the name, metals are found in abundance in the earth. However, China dominates the market for their production and processing into useful products.
His move to curb technology exports comes as rival countries try to cut their dependence on China's supply chains, fearing any escalation in tensions over Taiwan.
Gareth Hatch, rare earths expert and head of Strategic Materials Advisory, said the restrictions threaten to hit American and European companies that have ordered special equipment from China, such as furnaces and presses used to make magnets.
He said: «The lead time can be nine, twelve, eighteen months when you order this kind of equipment because the companies that make it don't sell by the thousands — they're made to order.
…But China has historically dominated over production. some worry now. Anyone who relies on Chinese equipment will be a problem.»
A spokesman for the Department of Business and Trade said: «It is vital for us to have a reliable supply of essential minerals for the UK, and this is exactly our Critical Minerals Strategy will do.
“The UK has recently signed several critical minerals agreements with key countries including Canada and Australia and our joining the CPTPP will help improve the resilience of our supply chains.
«The Government will continue to support British business by working with our friends and allies around the world on issues where our interests are aligned.»
Свежие комментарии