Name: Why China's control of rare earths matters | FT
Uploaded: 2021-06-05T16:58:02.000Z
Duration: 3 min 14 s
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Rare earths are essential for high-tech products, everything

Adverbs of degree

from electric vehicles to mobile phones and even fighter jets.

Transition words & phrases

However, China dominates the supply chain.

And as relations between the US and China deteriorate,

serious implications for the future of manufacturing.

Rare earths are a group of 17 metallic elements

with obscure names such as lanthanum and terbium.

They're actually relatively plentiful in the earth's crust.

mean they tend to be widely dispersed, making them

relatively difficult to mine and process profitably, hence

As a group, they tend to have high melting

But it is when they react with other elements

In fact, they're indispensable for many electronic, optical,

and magnetic applications and currently irreplaceable

for modern devices such as electric vehicles

They're also vital for the defence industry.

Half a century ago, the Mountain Pass mine in California

was the world's leading source of rare earths.

But a successful push by Beijing to become the global leader

in the sector means it now produces about 80

The sharp deterioration in relations between the US

and China is fueling concerns that Beijing

In July, China threatened to impose sanctions

on Lockheed Martin, the biggest US arms manufacturer.

This has prompted the US, Australia, and the EU

to step up efforts to create an alternative supply chain.

Currently, there is just one major non-Chinese supplier

of rare earths, Lynas, an Australian-listed company.

But Lynas can only handle the so-called light rare earths

reliant on Chinese suppliers for heavy rare earths.

In July, the Pentagon provided funding to Lynas and US-based

MP Materials to design heavy rare earths processing

facilities that could be based in the US.

have also signed an agreement to source new rare earth deposits

The task of establishing a non-Chinese supply chain

Even though rare earths are relatively abundant the process

of separating them poses technical and environmental

it to control prices and put pressure on challengers.

is to create a vertically integrated supply chain

that dominates mining magnates in high-tech manufacturing,

But an increasing number of western experts

to begin producing its own supply of rare earths

and also the high high-performance magnets

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Why China's control of rare earths matters | FT

process

essential

vital

strategy