Rare China’s Land puts defense giants in intersection

A car and robotics Industry affected particularly difficult According to restrictions on rare land in China in recent weeks, but analysts have warned that the Western protection giants will also feel warm.

Leading American and Chinese officials recover Trade negotiations In London, the second consecutive day on Tuesday, pushing for de -escalation tensions compared to rare ground minerals and advanced technologies.

In the White House there is signal The willingness to facilitate the exports of chips when Beijing speeds up the export of rare land by raising the investor’s hopes for a breakthrough. Both sides accused each other of resuming a previous trading transaction reached in Geneva last month.

The Chinese Ministry of Commerce in early April imposed export restrictions on several rare elements and magnets that are widely used in the automotive and defense sector. Serb was part of the response to the US president Donald TrumpIncreasing tariffs for exported products in Beijing.

Director of the National Economic Council Kevin Joset on Monday told CNBC “Box for Squawk“He expected a deal on rare lands to be reached quickly.

“So, we expect that … Immediately after the handshake, any export control from the US will be weakened, and rare land will be released in volume, and then we can return to the negotiations on the smaller issues,” Joset said.

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 processes them.

American officials before prevent What this domination creates a strategic problem against the background of turning to more sustainable energy sources.

William Bane, Head of the British Chamber of Commerce Department, said that on the first day of the US trade talks and China, it remains “absolutely vital” to achieve further breakthrough in rare land.

“Last weekend we saw a certain relaxation with licenses provided in the sectors related to robotics and electric vehicles, but if you take, for example, a critical mineral like Samarium, in magnet, it is absolutely important for the construction of f-35 fighters,” “Europe Early edition‘On Tuesday.

“They can’t do them without it. And without accessing it, it is strongly affected as the construction of the USA in the field, but perhaps its national security, if it remains,” he added.

The shares of some European defense giants were traded below Tuesday. German maker gearbox Color Attacked nearly 8%to cause losses on the European Stoxx 600. Sweden Sab fell on 5%, and Germany Reinmetall traded by 2.4% below.

CNBC contacted the US Department of Defense and the European Commission, Executive of the European Union.

Elements rare land play an integral role in modern defense technologies, according to SFA-OXFord ConsultancyInclusion of advanced radar and sonar systems, laser guidance technologies and motor technologies in combat conditions.

There are groups of the automotive industry complain The bulky process attempts to obtain the necessary approval, the prevention of increasing the threat of production as the stocks are exhausted. It seems China has offered us and the European automotive giants something over the weekend.

The Ministry of Commerce in China said on Saturday that it was ready to create a so -called “green channel” for an application for export licenses to accelerate the European Union’s approval process. Beijing also gave a license to rare land to US Automobile Giants General Motors. Freod and manufacturer of jeep Stellantis. Reports Reuters Friday with reference to unnamed sources.

Grekelin Basqueran, Director of the Security Program Critical Fighting at the Center for Strategic and International Studies (CSIS), Analytical Center based in Washington, stated that this is only a matter of time when the defense industry sounds anxious over the rare lack of land, which has already done it.

“Defense companies are on the impact line, given that we need thousands of pounds of rare land in each submarine and fighter,” Basquera CNBC said.

The United States, the European Union and Australia must coordinate activities at the proposal and demand to increase the production of rare land, Basquera CSIS said, adding that this need arises primarily due to the predominant price dynamics.

“If the price of the Praseodymium-Neodyium (PRD) is the Critical Contribution for Permanent Magnets Rare Earth is below $ 60 per kilogram by 2030, almost half of the predicted non-Chief supplies will be financially unpredictable.

“On the part of demand, the sale of incentives to buy minerals from the Union countries – similar provisions of the law on inflation – will be important,” she added.

Last month China temporarily stopped Export restrictions aimed at 28 US companies after trading have reached between Washington and Beijing in Switzerland.

However, China continued to block exports from this country of seven rare land to the US. Many of the 28 US companies that give a dual use restriction are common targets for Beijing’s sanctions because of their activities in the defense sector.

Henry Sanderson, an employee of the Royal Institute of the United Services (Rus), the London Analytical Center for Defense and Security, said the defense industry was not such a voice as the automotive sector when it comes to problems about the influence of rare flaws of the Earth.

“The defense is heavy because it is less transparent, but they certainly use rare earth and rare earthly magnets, and especially what is called Samarium Cobalt magnets, but this is much less demand than EVS, or something like this,” Sanderson said on the CNBC phone.

“It is less clear to me whether the defense is as worried as the civilian industry, but saying that, looking at the level of production of magnet in the West, it is very small,” he added.

– Eunice Yoon and Erin Doharty CNBC and Erin Doherti contributed to this report.