Rare earth exports are banned!Malaysia has done it, Indonesia, Myanmar has started, what about the U

Mondo International Updated on 2024-01-19

Rare earths, as key mineral resources, play an irreplaceable role in modern industry and technology.

Recently, Malaysia announced a ban on rare earth exports, and Indonesia and Myanmar have taken similar measures.

We can't help but ask, how will the United States respond to this situation?

Malaysia's prime minister recently announced that he would ban the country's rare earth exports.

He explained that this initiative aims to formulate new policies to promote the joint development of the upstream and downstream of the entire industrial chain to maintain the value of rare earths in Malaysia.

In fact, Malaysia is not the first country in Southeast Asia to do so.

Since 2020, Indonesia has banned the export of nickel ore, and the Philippines imposed additional taxes on nickel ore exports in January. Separately, Myanmar closed the country's largest rare earth producer from September.

These actions show that the entire Southeast Asian region has begun to pay more and more attention to the protection of rare earth resources, and no longer easily and cheaply export to European and American countries.

Rare earth elements are widely used in high-tech, new energy, electronic products and other fields.

However, due to the scarcity and strategic importance of rare earth resources, the demand for rare earths in the international market continues to grow, leading many countries to implement stricter control over rare earth resources.

Behind the trend of Southeast Asian countries taking measures to ban the export of rare earths is the improvement of Southeast Asian countries' strategic awareness of rare earth resources.

They are beginning to realize that rare earths are an important support for the country's economic development and should not be exported as a cheap commodity.

On the contrary, we should strengthen technological innovation and industrial upgrading through the integration of upstream and downstream industrial chains, so as to improve the added value of rare earths and the competitiveness of domestic industries.

This is a big problem for Western countries such as the United States, which has been buying rare earth resources from other countries at low prices.

According to the survey, Malaysia has only 30,000 rare earth reserves, compared with China's 44 million tons and the world's 1200 million tonnes is insignificant in comparison. However, for Malaysia itself, these rare earths are a valuable resource.

Rare earth is not only an important raw material for various high-tech production, but also an important raw material for the production of the military industry.

Given the critical role of rare earths in the modern industry, it is only natural that Malaysia and other countries in Southeast Asia should take measures to protect rare earths.

These countries actively promote the development of the entire rare earth industry chain, from mining, processing to application, to ensure the sustainable utilization and development of their rare earth resources.

Western countries are often skeptical of Malaysia's rare earth protection actions, believing that its export restrictions are a kind of barrier. However, we must recognize that rare earth resources are finite and the reserves possessed by different countries vary greatly.

Malaysia's rare earth reserves are not large, but they are an important strategic resource for the country, which is used to drive economic development and technological innovation.

In addition, Western countries have been engaged in resource plundering and market manipulation of other countries over the past few decades.

Malaysia and other Southeast Asian countries' rare earth conservation initiatives can be seen as a response to this injustice, with the aim of ensuring their own development and security.

The United States itself has 1.4 million tonnes of rare earth reserves, a figure that is much higher than Malaysia's 30,000 tonnes of reserves.

However, the United States does not have a clear advantage in rare earth development and refining technology. In contrast, China and some other countries have more experience and technical reserves in this area.

The development of China's rare earth industry has formed a complete industrial chain, from mineral mining to refining, processing and finished product manufacturing, with a competitive advantage. However, the rare earth industry chain in the United States is relatively weak and lacks complete technology and equipment support.

Moreover, the labor cost in the United States is too high, resulting in a large cost of rare earth development. In contrast, some Asian countries have lower labor costs, making them more competitive. In addition, the United States has stricter environmental regulations and higher environmental requirements for rare earth mining and refining, which further increases the cost burden.

As a result, the U.S. is more inclined to import rare earths from overseas rather than relying on its own resources for development.

In the past, the United States imported relatively low rare earths, which is one of the reasons why the United States is reluctant to consume its own resources.

The United States retains its rare earth resources as strategic reserves to ensure future and economic benefits.

However, at present, the global rare earth** is facing instability, and many countries have begun to restrict the export of rare earths. This situation could force the United States to reconsider its rare earths strategy.

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