Could the US and Europe go rare earth-free to escape China’s magnetic pull?

Rare earths are needed for everything from consumer electronics to electric vehicles, wind turbines and fighter jets – and China controls the supply chain. In the last of a four-part series, we look at how countries are looking for alternatives that could help reduce their reliance on China.

Seventy years ago, the US was the world’s leading producer of rare earth magnets. But by the start of this century, the country’s last producers of the most powerful commercial magnets were being sold off, locking in Beijing’s dominance over this critical market.

In 2010, the world was reminded of the stark reality of China’s control over rare earths and the production of permanent magnets after a territorial dispute with Japan led to Beijing temporarily banning rare earth exports to the country.

The move sent waves of concern through the supply chain as the price of these magnets soared, leading countries to examine their reliance on Chinese minerals in certain key sectors.

But strong demand for rare earth permanent magnets, which are used in everything from mobile phones, electric cars and wind turbines to defence systems, has made this difficult to achieve.

In April this year, Beijing tightened its export controls on magnets and seven rare earth elements, three of which – samarium, dysprosium and terbium – are also often used to make magnets.

According to a 2022 report by the US Department of Energy, America accounted for 16 per cent of total rare earth mine production in 2020, while China accounted for 60 per cent.

South China Morning Post