April 4, Beijing announced restrictions on the export of seven metals. The French newspaper Le Monde said that although many people do not know how to pronounce the names of these metals, they are China's trump card in responding to Trump's tariff trade war. On one hand, these metal elements are crucial in household appliances, automobiles, electronics, and defense; on the other hand, China almost monopolizes the supply chain of these metals: currently, 70% of the mining and 90% of the processing of these strategic metals are completed by China, and for terbium and dysprosium, China's monopoly is even higher, with 98% of the refining of these two elements worldwide being done in China. This gives China a huge bargaining chip in negotiations with Washington, even bigger than the chips of smartphone factories. Therefore, U.S. President Donald Trump turned his attention to the mineral resources of Greenland and Ukraine, and issued an order on April 24 to accelerate exploration and exploitation in deep-sea areas [including international waters].

In reality, Chinese producers now need to apply for export licenses for the seven rare earth elements for each client company. While Chinese producers are still applying for licenses for their clients and waiting for approval, most customs at Chinese ports have already intercepted the goods.

Le Monde emphasized that the message from Beijing is clear: in the future, who to sell or not sell rare earth elements to will be decided by China.

Le Monde pointed out that rare earth elements are not rare in the Earth's crust, but their content is not always high enough to make mining economically viable. Additionally, the mining of rare earth elements causes significant pollution, as it requires injecting acid into hillsides to liquefy the soil, collecting them in ponds, and then separating, refining, and processing them.

In China, the Baotou area of the Inner Mongolia Autonomous Region specializes in producing light rare earths, while the mining of heavy rare earths has long been in southern China, in the tree-covered Jiangxi Province.

In terms of mining, many mines in China have already closed down, and a large portion of the rare earth supplies for China's rare earth refineries are now being purchased from abroad. Northern Myanmar, bordering China's Yunnan province, has become the main site for mining heavy rare earths, and these rare earths are transported by truck to China, processed there, and then sold to other parts of the world.

A European executive said, "China dominates on such critical issues and in such strategically important mineral resources simply because it is the only country that has persisted. The West has stopped rare earth production either because the scale was too small or because profits were insufficient. Now we are paying the price."

In the face of China's dominance and monopoly, countries around the world are making efforts, but progress is slow, and ultimately, the world has accepted dependence on China.

In the United States, an old mine in Mountain Pass, California, has reopened. However, this mine mainly produces light rare earth elements, and ironically, most of its ore is exported to China for processing by Chinese companies. Nevertheless, the high tariffs imposed by both sides have made this mine unattractive. Therefore, the American company announced in a press release on April 17 that it would seek other avenues and develop downstream links of the industrial chain.

The Australian mining giant Lynas already has a processing plant in Malaysia and plans to open a new production line for separating heavy rare earths there by 2025. In France, the company Carester will open a factory for recycling magnets and separating heavy rare earths by the end of 2026.

However, before these alternative projects are launched, global supply will continue to rely on China.

Original article: https://www.toutiao.com/article/7499654551591469620/

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