Rare Earth Elements and Why China Controls Them

Rare earth elements are a group of seventeen metals that are essential to many modern technologies, including electric cars, smartphones, and wind turbines. However, these elements are not evenly distributed across the globe and are largely under the control of one country: China.

China controls an estimated 90 percent of the world’s rare earth elements, and this gives them a huge advantage over other countries when it comes to producing and selling products that require these metals. China’s dominance in the market has led to rising prices for rare earth elements, as well as concerns about potential supply disruptions. 

The main reason why China has such a large share of the global rare earth market is due to their low production costs. China is able to produce these metals cheaply because they have large deposits of them, and they have invested heavily in mining and refining operations. This has allowed them to undercut other countries’ prices and dominate the market. 

In addition to their low production costs, China also has a relatively lax regulatory environment when it comes to mining rare earth elements. This has allowed them to take advantage of the environment and extract more of the metals than other countries. 

The availability of rare earth elements is a major concern for many countries, as these metals are essential to many modern technologies. Without access to these elements, many countries would be unable to produce the products that require them. As a result, it is important for countries to find ways to diversify their sources of rare earth elements and reduce their dependence on China. 

In recent years, countries like the United States and Japan have been working to increase their own production of rare earth elements. They have also been investing in technologies that can help them to recycle rare earths, which would reduce their dependence on China’s supply. 

Overall, China’s control of the global rare earth market is a major concern. It gives them an advantage in the market and makes it difficult for other countries to compete. It is important for countries to find ways to reduce their dependence on China’s supply and increase their own production of rare earth elements. Doing so will help to ensure that the global market for rare earths remains competitive and that countries have access to the rare earths they need.