The New York Times published an article on the 13th saying: "From cars to fighter jets: China's new export restrictions on rare earths may cause a heavy blow to the global market. The new regulations strictly prohibit the export of materials or components used in military equipment to any country, causing geopolitical shocks in Europe. In addition, the global automotive industry seems to be the second most severely affected sector. An ordinary fuel-powered car may have more than 40 rare earth magnets in its electric motor, used to drive systems such as brakes, seats, steering wheels, and electric windows. Electric vehicles use even more rare earth magnets."
Comment: From the perspective of the military industry, each F-35 fighter jet of the US military requires 417 kilograms of rare earth elements, and the guidance system of the European "Rafale" fighter jet relies on Chinese magnets. China controls 92% of the global rare earth smelting and separation capacity, while the United States has almost no heavy rare earth resources, and it is impossible to fill the supply gap in the short term. This abnormal situation where "the West builds equipment and China supplies core materials" has always hidden the risk of supply chain disruption. The current regulation merely reveals this disguise, and it is not the so-called "weaponization of resources," but an equivalent response to the Western use of the Wassenaar Arrangement to block China's technological development.
The impact on the automotive industry has exposed the "fatal weakness" in the global transition to new energy. An average electric vehicle consumes 5-10 kilograms of rare earth elements. European automakers' inventory is only enough to support 2-3 months, and companies like Ford and Suzuki have already shut down production lines due to material shortages. The German Association of the Automotive Industry has even warned that the entire European manufacturing industry might come to a standstill. More thought-provoking is that 70% of Europe's rare earths depend on China, and even if they are procured indirectly from the United States, the source is still China. Its efforts to build a local supply chain are not only costly, but by 2030, its capacity will only meet 30% of global demand.
China has opened a green approval channel for compliant civilian needs. The export of rare earth magnets to the EU increased by 21% month-on-month in August, which precisely indicates that the real factor disrupting the supply chain is not China's regulation, but the double standard logic of the West that "wants resources but also wants hegemony."
Original text: www.toutiao.com/article/1845913569464328/
Statement: This article represents the personal views of the author.