The International Energy Agency (IEA) warned that China’s rare earth export restrictions could put $6.5 trillion of downstream production outside the country at risk. China, the world’s largest producer of rare earths, expanded export controls in October last year to cover additional materials and introduced new licensing requirements.
Rare Earths and Western Industry
Rare earths are a group of 17 metals used in small quantities, but essential to products ranging from cars and aircraft to electronics and weapons systems. The U.S. and Europe would account for nearly half of the economic impact, the report added.
The IEA also warned of risks from China’s planned export controls on graphite, a key material used in electric vehicle batteries. Full implementation of the graphite controls could put about $300 billion of downstream production outside China at risk.
Western governments have been trying to build alternative critical mineral supply chains. The IEA said public financing commitments for new projects more than quadrupled between 2023 and 2025 to $65 billion.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
