how china overpowered us to win the battle for rare earths
During this period, as China stepped up its control over domestic rare earth production-from electric vehicles to military hardware, rare earths are a broad mix of 17 elements-the United States has almost given up China\'s dominance in the rare earth industry.
China currently accounts for 70% of global production, with only one US mine in operation, Citigroup Inc . ) s. Industry outside defense \"has no direct way\" to break dependence on China\'s supply of rare earths, he said.
That\'s why Washington faces a new front in a trade war with the world\'s second largest.
China\'s largest economy after Beijing said it intended to limit exports of key materials.
S. Companies may be blacklisted, or banned from exporting rare earth metals to the United States, and may have a significant financial impact on technology companies that receive a large amount of revenue from China, according to Fitch Ratings research report, or use rare earth minerals.
The following are the cases of national foreign exchange reserves, export systems, major players and illegal activities.
In 2016, China merged its mining and separation companies into six franchise groups.
In order to better manage its strategic mineral resources and ensure the sustainability of the industry, Beijing has awarded annual production quotas to these groups.
In 2018, they received a total mining quota of 120,000 tons of rare earth oxides, compared to 105,000 tons in 2017.
The country plans to limit domestic mining production to less than 140,000 tons by 2020 to protect resources and reduce smelting and separation capacity from 2015 levels to 200,000 tons
Annual Plan released in 2016.
This is part of a drive to double the industry\'s profit margin to 12%.
According to data from the Ministry of Information and Technology, the following are the six major producers with a quota of 2018.
Where are the mines?
Inner Mongolia baiyunebo mine, run by rare earth companies in northern China, is the world\'s largest gold mine.
It has 83% of the country\'s total reserves, mainly light elements.
There are 8% mines in Shandong province and 3% mines in Sichuan. The remaining reserves are mainly concentrated in the southern provinces,to-
According to data from the website of China Rare Earth Industry Association on 2017, heavy form.
China\'s light rare earth exports dominate but need to be imported-to-
According to SMM Information Technology, heavy-weight products can make up for domestic shortcomings.
In terms of exports, the government does not have any control over the quantity or qualifications, as the company only needs to produce a sales contract to obtain a license.
China\'s exports of rare earths have tripled.
According to Chinese customs, production in 2018 was between 6% and 53,000 tons.
Exports have been growing every year since 2013.
Exports of rare earths and their products, including permanent magnets, increased by 5.
There were 4% to 95,586 tons last year, and 18,852 tons in the United States, accounting for 20%.
80% of China\'s rare earth purchases depend on China.
According to China\'s industrial group, China\'s imports doubled last year to about 70,000 tons, the first time China has become a major importer.
Although there is no official data, the country is still plagued by illegal exploration and production.
According to SMM analyst Wu Xiaofeng, the government\'s crackdown has led to a sharp decline in illegal production, almost equivalent to about 100,000 tons of oxide production approved in a decade, without giving a specific estimate.
According to a US Geological Survey, citing Chinese government data, China\'s output last year was estimated at 180,000 tons, compared with an official quota of 120,000 tons.
> Consumption accounted for 44% of China\'s consumption, of which polishing accounted for 10%, oil and petrochemical accounted for 9%, and the rest for metallurgical machinery, glass, catalyst and lighting, according to SMM.
> The growing short-term demand at home for new permanent magnets
Energy vehicles are driving demand growth, and China\'s dependence on imports is also increasing as domestic production is limited.
Earlier this year, the government issued the first round of production quotas, at 60,000 tons, down from 73,500 tons in the same period last year, compared with production in 2018.
The annual limit is 120,000 tons.
The market will eagerly wait for the next round of production quotas, which will be released later this month.
For the first time this year
Given that China\'s total demand is expected to rise to 180,000 tons, companies may have to purchase supplies from overseas, said Chen Zhanheng, deputy secretary-general of the rare earth association, Ma Qi said. —