Center for Strategic and International Studies
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Published
January 8, 2024
What China’s Ban on Rare Earths Processing Technology Exports Means
Centrist
Commentary
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U.S.-China Relations
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Summary
- China's decision to ban the export of rare minerals affects U.S. national, economic, and rare earth security, given that rare earth elements are crucial in defense and technology sectors.
- The U.S. has and should expedite its efforts to address its vulnerability in this area through funding decisions to enhance domestic rare earth processing capabilities.
Overview:
This article was written by Gracelin Baskaran, focusing on the implications of China's recent ban on the export of rare earth extraction and separation technologies.
- China's decision affects U.S. national, economic, and rare earth security, given that rare earth elements are crucial in defense and technology sectors.
- The U.S. has begun to address its vulnerability in this area through funding decisions to enhance domestic rare earth processing capabilities.
Key Quotes:
- "Rare earth elements—a group of 17 metals—are used in defense technologies, including missiles, lasers, vehicle-mounted systems such as tanks, and military communications."
- "The rollout of major export restrictions...should be a powerful signal to U.S. policymakers that...there is a significant need to both build domestic capabilities and leverage international cooperation.
What They Discuss:
- China currently produces 60% of the world's rare earths and processes nearly 90%, giving it a near-monopoly in the market.
- The U.S. is particularly exposed to processing restrictions for heavy rare earths, with China separating 99.9% of them.
- Recent U.S. initiatives include a series of Defense Production Act (DPA) Title III awards and Department of Defense funding to build domestic rare earth separation and processing capabilities.
- Global reserves of rare earths are substantial, with significant percentages in Vietnam, Brazil, India, and Australia.
- The U.S. delay in developing processing capacity is a concern due to China's technical expertise in this area and the time required to operationalize new facilities.
What They Recommend:
- The U.S. Congress should incentivize the production of rare earth element magnets through tax incentives to promote domestic manufacturing.
- Building domestic capabilities and international cooperation is crucial for sourcing and developing processing capacity.
Key Takeaways:
- China's ban on rare earth technology exports highlights the strategic importance of these materials in various sectors.
- The U.S. is working to reduce its dependency on China by enhancing domestic processing capacity.
- International cooperation and diversification of rare earth sources are key strategies for ensuring national and economic security.
- The development of domestic processing facilities is essential but faces challenges in terms of technical expertise and operationalization timelines.
This is a brief overview of Gracelin Baskaran's work from the Center for Strategic and International Studies. For complete insights, we recommend reading the full article.
Original Read Time
9 min
Organization
The Brookings Institution
Category
Israel-Gaza War
Political Ideology
Center Left