The post China’s monopoly on rare earth metals is not under any threat appeared on BitcoinEthereumNews.com.

Even as China signals it may issue more export permits for Europe and the United States, its tight grip on rare earth metals looks unlikely to loosen anytime soon, analysts warn. Three companies listed in Shenzhen announced this month that Beijing had approved their applications to ship magnets made with rare earths, elements essential for electric cars, defense systems, semiconductors, and other high-tech goods. Yet Baotou INST Magnetic New Materials cautioned in May that its permit covers only a single shipment. In Europe, car-industry groups note that China’s long-term licenses for magnets and heavy rare earths run out after just six months. CNBC reported that cutting dependence on China will be “extremely difficult,” and any gains are likely to be small and slow, according to a Tuesday note by Rico Luman, senior sector economist for transport and logistics at ING. China produces about 60% of the world’s rare earths and handles nearly 90% of processing, meaning it imports ores from abroad and refines them at home. “Europe currently produces no rare earths, and the U.S. has only recently begun small-scale output of neodymium and praseodymium. Both lack the reserves needed to ramp up fast,” Luman wrote. Already this summer, several European automakers and U.S. tech firms operating in China have halted production lines or warned of part shortages. In early April, Beijing placed export controls on seven rare earths, following a series of tighter rules over the past two years on many critical minerals. Washington had hoped that the April curbs would be rolled back after a 90-day tariff pause agreed in mid-May. After trade talks in London this week, U.S. officials said Chinese authorities will soon allow more rare earth exports. Volatility persists in rare earth market A commerce ministry spokesman said Thursday that China has approved “a certain…

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Filed under: News - @ June 13, 2025 2:26 pm