US President Donald Trump has imposed heavy taxes (tariffs) on many countries of the world. China is also not untouched by this. Now a threat has been made to impose 100% additional tariff on it from next month. It has a reason. China has recently imposed strict controls on rare earth elements. Let us tell you that rare earths have now become a force like oil and gold in the international market.
What is the movement on rare earths in the world?
America has China But 100% tariff has been threatened regarding the ban on rare earths. Afghanistan has invited India to invest in its mineral sector. In the Myanmar civil war, the Kachin Independence Army has captured Panwa city, which is a major center of rare earth production. Is.
At the same time, Japan will invest 120 million dollars in France’s rare earth project. The first rare earth processing plant in Australia has started in Kalgoorlie. Estonia is now going to make such magnets which will be enough for 15 lakh electric cars.
What are rare earths, why are they so valuable?
Rare earths are those special minerals that are the lifeblood of new technology whether it is smartphones, laptops, clean energy, or electric vehicles. They are even used in missiles, radar systems, drones and jet engines. These metals have such magnetic, luminous and electro-chemical properties which cannot be found in any other material. Therefore they are irreplaceable i.e. there is no alternative. Now when the whole world is moving towards AI and clean energy, the supply and sustainable production of rare earths has become a global strategic concern.
Why are you worried about China’s new rules? America,
American defense power (US Military Power) is highly dependent on these special minerals. America’s F-35 fighter jets, Virginia and Columbia-class submarines, Tomahawk missiles, radar systems, JDAM (smart bomb) and Predator drones run on them.But the problem is that while America is trying to increase their production, China is progressing 5-6 times faster.
China’s new rules will come into effect from December 1
Under this, China will not allow the export of rare earths to those companies which have links with any foreign military, which also includes America. That means, if any company asks for rare earth for military use, its request will be directly rejected. The direct objective of this policy is to stop the use of Chinese rare earths in foreign defense supply chains.
Who are the big players and what are the predictions?
Let us tell you that the production of rare earth takes place in two parts, first is mining and second is refining. In the year 2024, these three countries China, Australia and Myanmar together will extract 86% of the world’s rare earths. According to IEA report it is estimated that By 2030, China’s share in this will be 51%. Whereas Australia will be at 13% and Myanmar at 11%.
China’s dominance in refining
China, Malaysia and America are the top-3 who control 97% of the world’s refining. By 2030, it is estimated that China will be a 76% participant in this. Whereas Malaysia will be at 9% and America at 7%.
Why is refining so difficult?
Refining is more complex than mining because it also produces radioactive waste. IEA’s Global Critical Minerals Outlook 2025 Report According to , radioactive elements like uranium and thorium are also often found in rare earth minerals. Very few countries in the world have the capacity to handle or store them safely. Without proper storage, these elements can mix in the environment and cause harm. The report shows that only 17% of the world’s rare earth miners follow the Global Industry Standard on Tailings Management.
America’s new trick
To counter China’s growing hold, the Pentagon has recently started preparations to buy critical minerals worth up to $1 billion. This means that the war for rare earths has now become a war of strategy and not just of minerals.
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