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China Bans Export of Rare Earth Processing Technology

Move expected to impact global supply of strategic metals, as China controls around three-quarters of rare earth production.

  • China, the world's leading processor of rare earths, has banned the export of technology to extract and separate these strategic metals.
  • The ban is expected to have the biggest impact on 'heavy rare earths,' used in electric vehicle motors, medical devices, and weaponry, where China has a virtual monopoly on refining.
  • Rare earths are a group of 17 metals used to make magnets for use in electric vehicles, wind turbines, and electronics. China currently controls around three-quarters of rare earth production.
  • Western countries are increasingly treating the supply of these metals as a matter of national security, especially as the global energy transition is fueling fears of potential shortages.
  • The move comes as Europe and the United States scramble to wean themselves off rare earths from China, which accounts for 90% of global refined output.
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