Beijing has announced the introduction of export controls on seven rare earth minerals, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These minerals are essential components in the production of displays, powerful magnets, as well as in critically important medical and defense technologies.
This is reported by Finway
From now on, special export licenses will be required to ship these metals from China. However, as noted by Chinese officials, the licensing system is still being established, which may lead to delays in supply.
Impact on International Markets
These measures could significantly affect the US, Europe, and Japan, as rare earth metals are used in a wide range of technologies, including optical lasers, radar systems, magnets for wind turbines, and coatings for jet engines. According to experts, delays in supplies could result in production cuts for many companies that rely on these resources.
Context of the Situation
It is worth noting that over the past two years, the export volumes of other critically important minerals, such as gallium, germanium, and antimony, have also come under export control, leading to their decline to zero within a few months. Exporters needed time to obtain the necessary certifications.
In light of these events, the Biden administration is working on an executive order that will allow the commencement of stockpiling critical minerals from the ocean floor to reduce dependence on imports.