Explained: What Are Rare Earths And Why Has China Stopped The Export

Two months after China suspended exports of seven critical rare earth metals and powerful magnets made from them, the ban is posing a serious threat to manufacturing plants in the United States and Europe.

The affected elements include dysprosium, gadolinium, lutetium, samarium, scandium, terbium, and yttrium. These materials are crucial for producing electronics, electric vehicles, defence equipment and renewable energy technologies.

ALSO READ | Rare Earth Production Outside China, Country Maintains Its Dominance

What Are Rare Earths?

Rare earths are a group of 17 elements found in the Earth's crust. They include 15 metals called lanthanides, plus two others named scandium and yttrium. Even though they are called "rare," these elements are actually quite common in the ground. The challenge is that they are usually spread out in very small amounts, so mining and separating them is difficult and expensive.

Why Are Rare Earths Important?

These elements have special properties that make them very useful in many modern technologies.

For example, they help make strong magnets used in electric car motors and wind turbines. They are also found in smartphones, computer screens, and other electronic devices. Rare earths are essential for defence equipment like radar and guidance systems, as well as medical machines such as MRIs.

Where Do We Get Rare Earths From?

China is the world's biggest supplier of rare earth elements. It controls most of the mining and processing, which means many countries depend on China for these important materials. 

China mines about 70 per cent of the world's rare earth metals. Other countries like Myanmar, Australia, and the US mine some too, but China is the leader. What makes China's control even stronger is that it also processes nearly 90 per cent of the rare earths globally.

This means China not only digs up the metals but also refines and prepares them for use, including processing almost all the rare earths mined in Myanmar and nearly half of the US production.

After the export ban, countries are now trying to find other sources or build their own supply chains to reduce reliance on China.

Last month, Australian firm Lynas Rare Earths produced dysprosium oxide at its Malaysia facility, becoming the only commercial producer of separated heavy rare earths outside China. 

Why China Stopped Exporting Rare Earths

China's decision to limit rare earth exports is mainly seen as a way to respond to trade tensions with the United States. When the US placed reciprocal tariffs on Chinese goods under President Donald Trump, China used its control over rare earth metals to push back.

The Chinese government has also cited the need to manage its rare earth resources sustainably and to curb illegal mining activities, which have raised environmental and social concerns.