**Global**: China has imposed export controls on critical rare earths in a strategic move amid escalating US-China trade tensions, influencing global supply chains and prompting nations to secure their mineral resources, with significant implications for technology sectors and geopolitical dynamics.
In a significant turn of events in the ongoing trade tensions between the United States and China, China has imposed export controls on various rare earths, which has drawn attention to the critical minerals that are becoming increasingly vital in global geopolitics. This development is seen as a response to the economic rivalry that has escalated in recent years, particularly regarding the access and control of essential mineral resources. As a nation that dominates the production of rare earth elements, China’s move is poised to create ripple effects across global supply chains.
China’s export control list will include seven categories of medium and heavy rare earths, amongst them samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items. According to official announcements, this policy is likely to impact countries reliant on these minerals for various high-tech applications. The imposition of these controls is regarded as a strategic decision, aligning with the broader context of the US-China trade dispute.
Amid these developments, former President Donald Trump has placed a significant focus on securing access to mineral resources as part of a comprehensive strategy aimed at bolstering the economic security of the United States. In recent statements, he emphasised the need for domestic capability for critical minerals, commenting on a mineral deal with Ukraine and expressing interest in tapping into mineral resources located in Greenland and the Arctic. This approach reflects a broader US strategy to minimise dependency on China for supplies of essential minerals, especially as Western powers express concern over China’s dominance, which accounts for approximately 70% of global production of rare earth elements.
The heightened demand for rare earths is largely driven by the renewable energy sector and the increasing prevalence of electric vehicles, with growth in annual value for rare earths anticipated to increase tenfold by 2035. In an indicative forecast, the European Commission’s Joint Research Centre has projected that Greenland could provide nearly 10,000 tons of rare earth oxides to the global supply chain by 2030, a significant boost in the race for critical minerals.
The competitive landscape is not restricted to Western nations. Countries in Asia, particularly the United Arab Emirates (UAE) and India, are also making strategic moves to secure their mineral supplies. The UAE is reported to be expanding its footprint in Africa’s mining sector, with investments aimed at enhancing production capabilities. A notable transaction involved Ambrosia Investment Holding acquiring a 50% stake in Allied Gold’s operations in Ethiopia and Mali, with plans to inject significant capital to ramp up production while incorporating sustainable practices.
India has initiated the National Critical Mineral Mission, allocating around USD 196 million to secure its own critical mineral supplies, specifically in high-tech industries and defence manufacturing. Discussions are also underway between India and Chile to access key minerals such as copper and lithium. Chile’s President Gabriel Boric remarked on the importance of ensuring that these resources are efficiently managed to add value beyond mere raw export.
In light of these developments, both established and emerging technologies are poised to transform the mining industry. Companies are increasingly turning to smart technologies, including artificial intelligence, automation, and IoT, to facilitate more efficient, safer, and environmentally responsible extraction of minerals. The integration of drones for geological surveying and advanced analytics is shaping a new era for mining, aligning with rising global demand for critical minerals.
The complex landscape surrounding rare earths and critical minerals is likely to play a pivotal role in future geopolitical dynamics. As nations vie for control over these essential resources, the outcome will undeniably influence global technology sectors and broader economic relationships for decades to come.
Source: Noah Wire Services
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