For years, the Chinese government has worked to control the export of rare land, a group of metals used in a range of products, as common as semiconductors and lights. Now, in its trade war with the United States, China is moving to limit the market for these metals even more, which could have devastating consequences for American construction and military power. So what exactly are these metals and why are they so important?
What are rare land?
There are 17 types of metals known as rare land, which cover the periodic table and are vital to industries such as technology, energy and transport. With names such as Terbium, PraseodyMium and Dysprosium, metals are important ingredients for some of the most advanced technologies.
Rare land can be classified into two species: heavy and lightweight. Heavy rare earth has more atomic weight and are usually rarer, which means that they sell in smaller quantities and are prone to deficiencies. Light metals, on the other hand, have a lower atomic weight. The two most important are neodymium and grocery store, which are mainly used for the creation of a magnet.
What are they used for?
Uses for rare land are expansive: semiconductor chips that apply artificial intelligence. the engines of electric vehicles. Fighters and guided rockets used by the US Army. wind turbines; and LED lights located in millions of households, among others.
Many rare earth have chemical properties that make them heat resistant so that they can be used to create high quality magnet, glass, lights and batteries. Magnets from rare earth are significantly more powerful – and valuable – than other types, especially in the production of electric cars.
Do the United States produce rare land?
The United States has only one functional mine of rare earths in Mountain Pass, California, which produces about 15 % of world rare earths.
It wasn’t always like that. In the 1980s, the United States was a leader in the production of rare earths, representing about one -third of the world market. However, along with a decades of effort from China to take control of the market, the share of rare land production in the United States declined slowly until it stopped almost in the early 2000s.
Where do the rare land come from?
Rare land are mined by rock deposits in the earth’s bark. With almost 70 % of the market, China is able to control the export and price of metals sold worldwide. About 90 percent of the magnets of rare earths are produced in China and 99.9 % of the global disadvantaged, which is used by Chipmaker Nvidia to create capacitors, is mined in China.
In recent years, rare land has become an increasingly important geopolitical tool. Trump’s administration tried to cross an agreement to acquire the rare land of Ukraine in return for military support. The administration has also talked about a comprehensive acquisition of Greenland, partly because of the rich offer of rare land.
What will be the impact of China’s restrictions on rare land?
Without a sufficient offer of rare earths, the American construction for areas such as the automotive industry will be ground. Some US companies have stored rare land for years pending a trade war, but it is not clear how long these supplies will last if China cuts exports.
It could also affect the strategic goals of the US Army, which could end without rare land with shortages of aircraft, rockets and aircraft. Technology manufacturers such as Nvidia, whose brands are already incomplete, could also be affected, along with smartphone manufacturers such as Apple.
While many rare land mining companies in China have been privately or even foreign, the Chinese government has integrated industry control, acquiring the largest local miners with state -owned companies, giving it complete control of construction and export.
