China has announced new export controls on several rare earth elements and related products, which are crucial components for defense and technology. These elements are used in a wide range of advanced technologies, including optical lasers, radar devices, wind turbines, and jet engine coatings. China is the dominant supplier of rare earths, accounting for almost 70% of global production, and 70% of US imports.
The new controls are expected to have a significant impact on US companies, as well as European offshore wind turbine manufacturers, which rely heavily on China for rare earth imports. The restrictions could create a supply chain bottleneck for offshore wind turbines, making it difficult for companies to obtain the necessary materials.
The US has been seeking to diversify its supply chain, with President Trump expressing interest in acquiring rare earth supplies from Greenland and Ukraine. The list of controlled rare earths includes samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. China has already imposed limits on germanium and gallium.
The restrictions are part of a ongoing trade dispute between the US and China, and are likely to have far-reaching consequences for global supply chains. Western nations are likely to continue seeking alternative sources of rare earths, as China’s dominance presents a significant risk to their economies. The control of rare earths is a critical component of any country’s ability to produce advanced technologies, making it a valuable resource in the global economy.