What Are Rare Earth Magnets And Why China's Export Ban Matters To India
Among the elements halted by China are dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium.
In April, China suspended the export of seven critical rare earth metals as well as the powerful magnets made from a few of them. The stoppage has not only caused severe shortage threatening manufacturing units across the US and Europe, it has left automakers in India with only one month to secure fresh supplies from China.
There are possibilities of vehicle production coming to a grinding halt in its absence in the world’s third-largest automotive market.
China’s April 4 export ban on rare earth magnets meant that the auto parts makers in India had 90 days of supplies, while an Indian entity would now be required to apply for a fresh licence, insiders aware of the matter told NDTV Profit.
Among the affected elements, where China holds clear dominance, include dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium. These are mostly mined in China and Myanmar, besides being considered the hardest to separate chemically, The New York Times reported.
These materials are utilised for the production of electronics, electric vehicles and defence equipment.
Rare Earths: What Does It Mean?
These are a group of 17 types of metals that are found in the Earth's crust. Among these are 15 metals, named lanthanides, while two others are called scandium and yttrium.
Notably, most of them are not actually "rare" and can be found all around the planet. But these are considered extremely difficult and expensive to mined and separated, since they are seldom found in large ore deposits.
These are termed "rare" as it is difficult to separate them, often requring over 100 stages of processing.
They are highly useful in several modern technologies, such as making strong magnets for electric car motors and wind turbines. Not just that, some of them are even found in smartphones, computer screens and are used in medical machines like MRIs.
China's Control On Rare Earths
As per reports, China mines nearly 70% of the rare earth around the world, while most of the remaining is done by the US, Australia and Myanmar.
Another thing to note here is that China does the chemical processing for roughly 90% of the rare earths. This means that the country not just mines it, but also prepares it for use. It processes all of Myanmar’s rare earths and half of the production in the US.
The Chinese government claims that the export of seven rare earths have been suspended since they are “dual-use items” with both military and civilian applications. On the other hand, the US states that the real reason was due to Beijing's retaliation for the Trump administration’s decision to impose higher tariffs on imports from China and other nations.
