Rare earths are called"Industrial Vitamins", which plays a key role in modern industry. In terms of rare earth production and processing capacity, China has 70% of the world's production, ranking first. In contrast, both the United States and Australia produce far less than China. However, production alone will not be able to occupy a leading position in the rare earth market, and the key is China's strength in rare earth processing. China has a strong level of rare earth processing capacity and innovative research, and many countries ship rare earths to China for processing and then import them back. China became one of the largest importers of rare earths to the United States. This dominance has led some Western countries to try to build a chain that does not depend on China.
Rare earths not only need to be refined and sorted, but also need to be processed intensively before they can be used in actual industrial production. China's technological level in rare earth processing and refining far exceeds that of other countries. Rare earth processing capacity is the key to building a complete industrial chain. On December 21, China issued the "Catalogue of Prohibited Export Restrictions in China" to restrict the export of rare earth mining, beneficiation and smelting technologies, dealing a heavy blow to the United States. This is because the manufacture of rare earth permanent magnet materials is not just through the simple extraction of rare earths. Although many countries such as Vietnam have rare earth reserves, they are unable to establish a complete processing process due to the lack of a complete production and processing chain, technical support and sufficient investment time. Rare earth magnets are a good example, and only China has the strength to produce rare earth magnets from start to finish.
Recently, Wall Street has made it clear that breaking China's control of rare earths is an almost impossible task. They gave a practical example of how you can easily buy 30 powerful magnet pieces from China for just $2. Such a cheap ** makes it impossible for other countries to compete with it. In addition, Wall Street** points out that even the large rare earth mines in Los Angeles have failed because of this low-priced product, despite the huge rare earth resources. This suggests that Wall Street believes that it will not be easy to break free from China's rare earth dominance.
China's tightening export restrictions on rare earths have had an impact on international markets. The dwindling circulation of rare earths has put pressure on the manufacture of high-tech products, such as new energy vehicles. Affected by the shortage of rare earths, companies that are trying to develop electric vehicles are facing difficulties, which may also hinder the development of new energy vehicles in Western countries. However, the real purpose of China's increase in rare earth quotas is not to fight a game"Rare earth wars", but to promote the development of the field of new energy vehicles. China has taken a number of actions, such as announcing export bans on rare earths and increasing quotas, to support new energy vehicle manufacturers. China is committed to promoting the development of the rare earth industry to be high-end, intelligent and environmentally friendly, and to maintain the sustainable development of rare earth resource utilization.
Summary: Rare earths play an important role in modern industry, and China, as the world's largest producer of rare earths, has advantages and responsibilities. China's rare earth processing capacity and technical level exceed that of other countries, and rare earth processing capacity is the key to building a complete industrial chain. China's tightened export restrictions and increased quotas for rare earths are aimed at supporting new energy vehicle manufacturing and promoting sustainable development, not a fight"Rare earth wars"。Wall Street** believes that breaking away from China's rare earth dominance is an almost impossible task.