Rare Earth Metals In China
Source : The Hindu
GS II : Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora

Why in News ?

Rare Earth Metals at the heart Of China’s Rivalry with US and Europe. China has rare minerals that are essential to electric vehicles, wind turbines and drones.

Key Facts

• At a time of frequent geopolitical friction among those three powers US and Europe want to avoid this scenario by investing in the market for 17 minerals with unique properties that today are largely extracted and refined in China.
• United States imported 80 percent of its rare earth minerals from China according the US Geological Survey.
• European Union gets 98 percent of its supply from China.
• Amid the transition to green energy in which rare earth minerals are sure to play a role.
• China’s market dominance is enough to sound an alarm in western capitals.
• Neodymium, Praseodymium and Dysprosium
  • Crucial to the manufacture of magnets used in industries of the future like wind turbines and electric cars.
  • They are already present in consumer goods such as smartphones, computer screens and telescopic lenses.

US and Rare Earth Metals

• US Senate passed a law aimed at improving American competitiveness that includes provisions to improve critical minerals supply chains.

  

• It aims to boost production and processing of rare earths and lithium another key mineral component. 
• While working with allies and partners to increase sustainable global supply and reduce reliance on geopolitical competitors.
• Major production can be found at the Mountain Pass mine in California was one of the major player before China
• It is one of the world’s largest and highest-grade rare earth deposits, with soil concentrations of seven percent versus 0.1 to four percent elsewhere.

Impact over Europe

• An action plan will soon be presented to the European Commission on how to boost production.
• If recycling is scaled up 20 to 30 percent of Europe’s rare earth magnet needs by 2030 could be sourced domestically in the EU from literally zero today.
• The desire to accelerate rare earth production comes amid a shortage of semiconductors, which are essential for the computing and automotive industries and mostly manufactured in Asia.

India and Rare Earth Metal

• India has the world’s fifth-largest reserves of rare earth elements, nearly twice as much as Australia, but it imports most of its rare earth needs in finished form from China.

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