Chinese dense plot on rare lands shows little signs of relaxation

China’s domination on the world network of rare land will not decrease easily, even if Beijing decides to approve more export licenses through transactions with Europe and the US

Three Chinese companies listed by Shenzhen This month said it Beijing approved his exports Magnets with rare earth are metals important for cars, protection, semiconductors and other industrial products. But another firm, Baotou Inst Magnetic New Materials, said the export license last month can only be used for one Shipment.

In Europe, the automotive industry said that in the case of magnets and heavy rare lands, long -term exports from China were only valid for six months.

Diversification from Chinese rare lands is likely to be “extremely difficult”, and, at best, a limited long -term solution, according to a recording on Tuesday from Rick Luman, the senior sector of transport and logistics in the Dutch Bank.

China is an undisputed leader of the supply of critical minerals, manufacture Approximately 60% of world supplies rare land and processing Almost 90%, which means that it imports these materials from other countries and clarifies them.

“Currently, Europe does not produce rare land, and the US has only recently started large-scale insidia production. However, both regions have only a share of global reserves, limiting their ability to scale,” Luman said.

Already in China there are European automakers and high -tech enterprises in China stopped the production or warned about the lack of This summer.

China has announced export management on Seven rare land in early AprilAfter a number of tougher restrictions over the last two years on a wide range of critical minerals. Washington had Expected turnout of April Management After the United States and China agreed to a 90-day tariff in mid-May. After trading talks in London this week, US officials noted that Beijing will soon allow more rare earth exports.

China has approved a “certain number” of export permits for rare earthen elements and related subjects, The Ministry of Commerce Press Society said on ThursdayAdding that China will continue to intensify the examination and approval for such applications for license.

This does not yet significantly improve business conditions.

The market remains “changing” even after trading negotiations in London by the United States-China, said Philip Keren, CEO of the Belgian Chemicals Group Solvay, which manages the largest processing plant outside China in La Roshele, France.

In response to this unpredictability, he said the company uses recycled material and studies in China an alternative to search.

“This is how we adapt to the current, unpredictable situation, and I believe that the best softening in this type of circumstances is to master the technology,” Keren said. Solvay seeks to supply 30% of the demand in Europe for permanent magnets by 2030.

It’s easier to say than to do, because China has created control over a lot of global supply networks. Eg in batteries in China gained 68% graphite Required, exquisite 60% of the world lithium and 72% of cobalt used worldwide, according to the US Congress report since 2019.

As a sign of a problem for the world business to deprive the dependence on Chinese rare people, several automakers, including General Motors and BMW And the main suppliers, developing electric cars with small content rarely. Few people managed to scale production to level that could reduce the costs.

The carmakers will have to “manage two ecosystems: one exclusively for China and one outside China,” said Lei Sing, an independent analyst in the Chinese car industry.

Separately, Lewis Black, CEO of Almonty Industries, said it would take a “considerable amount of time” to find alternatives to the supply of rare land in China.

Speaking with CNBC “A boxed box as Asia“On Friday, Black said China defended its market share by pushing the prices to which companies of other countries have left business, and investors were not encouraged to consider capital.

At the end of last year, China increased restrictions on civilian use products that may have military use. Rules are not limited by geographical position, that is, they can cover any Chinese deal with a foreign person or individual Law Firm Morrison Foerster.

In February, China announced export management for five Critical minerals, including tungstenExtremely solid metal used for accurate cutting tools, weapons and semiconductor production. Country Manages 80% of the tungsten supply chain.

Last week, a European company needed tungsten during the week, said Oliver Kleinhepel, Executive Director EQ Resources, which states that this is one of the top two tungsten processing companies.

He warned of a “complete structural shift” when Wolf -wide enterprises are forced to close, stimulating their peers Chinese peers accept this share in the market.

Almonty Industries is working to re -open a big tungsten mine in South Korea, but the company expects its metal supplies to meet us, the EU and South Korean protection needs.

“It will always happen, it was inevitable, it is not something that caught anyone unexpectedly until it happened, and then everything (question) was:” What are we doing? “,” said Black. He said he hoped that the company’s lab in the tungsten could make progress in the next two years when more metal from the tail, which are currently in vain in production.