China will halt the export of a range of rare-earth technologies, potentially making it harder for the US and other western nations to bolster supplies of strategic raw materials

China has recently announced a significant change in its rare-earth policies, aiming to halt the export of certain rare-earth technologies. This move could impact the ability of the US and other Western countries to increase their supplies of these strategic raw materials.

Rare earths, a group of 17 elements, are crucial in a wide array of applications, ranging from wind turbines and military equipment to electric vehicles. Over the last 30 years, China has established a dominant position in both the mining and refining of these materials.

The new regulations implemented by China do not restrict the export of rare-earth products themselves. However, they seem designed to impede efforts to develop the rare-earth industry outside of China, particularly in Western countries.

The issue of critical metals is gaining more attention, especially in Western nations, as they increasingly consider these supplies to be a matter of national security. This concern is heightened by the global energy transition, which raises the possibility of future shortages.

The US, under President Joe Biden, is leading efforts to reduce dependence on China for critical minerals, ranging from rare earths to lithium and cobalt. President Biden’s major climate legislation includes measures to boost domestic supply or to source these materials from allied countries. In response, China has imposed export restrictions on other key minerals like gallium, germanium, and graphite.

Although Biden's climate bill and Europe’s Critical Raw Materials Act are set to provide new funding for potential suppliers, Beijing's recent move highlights the technical hurdles Western producers may face. These challenges stem from the refining processes that China has perfected over many years, underscoring the complexity of reducing reliance on Chinese rare-earth technologies.