China deploys rare earths as weapon in trade war with Trump

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🗞️ Driving the news: China has expanded export controls on seven rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—as part of its trade retaliation against U.S. tariffs imposed under President Donald Trump
• The move raises concerns over the global supply of critical minerals used in sectors ranging from electric vehicles to defense

🔭 The context: China accounts for nearly 70% of global rare earth production and has previously curbed exports of other critical minerals such as gallium and graphite amid escalating trade tensions
• The new restrictions add scrutiny over export destinations and purposes, though they stop short of a full ban
• Notably, neodymium and praseodymium—vital for high-strength magnets—are not included in this round of controls

🌍 Why it matters for the planet: Rare earth elements are vital for green technologies including wind turbines, EVs, and energy-efficient lighting
• Supply disruptions could slow clean energy transitions globally, heightening the need for diversified sourcing and recycling
• The measures also underscore the geopolitical risks tied to concentrated supply chains in clean tech manufacturing

⏭️ What's next: Exporters must now obtain certification, potentially delaying shipments and reducing availability
• Nations dependent on these materials may accelerate strategies for domestic mining, alternative materials, and recycling technologies
• The move may spur further trade and diplomatic tensions, especially as the U.S. considers countermeasures or incentives to reduce reliance on Chinese rare earths

💬 One quote: “These measures safeguard China’s national security interests and bolster the strategic value of investing in the rare earth industry chain,” — Citic Securities

📈 One stat: China produces nearly 70% of the world's rare earths, according to the U.S. Geological Survey

See here detailed sustainability performance of companies like Peak Rare Earths, and Lynas Rare Earths Ltd.

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