Escalating U.S. – China Trade War Leads to Speculation Escalating U.S. – China Trade War Leads to Speculation on new Chinese Rare Earth Export Restrictions
DONALD S. BUBAR, M.SC., P. GEO, JUNE 03, 2019
On May 20, 2019 Chinese President Xi Jinping visited JL MAG Rare-Earth Co Ltd., a rare earth producer in Jiangxi province, China. Xi was accompanied on the trip by Liu He, the vice premier who has led the Chinese side in the trade negotiations. The visit “sends a warning signal to the U.S. that China may use rare earths as a retaliation measure as the trade war heats up,” said Pacific Securities analyst Yang Kunhe, “that could include curbs on rare earth exports to the U.S.” This could also result in increasing prices for rare earth products outside China (as it did in 2010 when China restricted rare earth exports to Japan) and renewed interest in establishing new rare earth supply chains outside China...
Roskill notes the looming supply shortage comes at a time of increasing global demand for REE. Demand for rare earth permanent magnets vital to electric vehicle technology is forecast to show strong growth through 2028, which will particularly impact pricing and availability of neodymium, praseodymium (Nd-Pr) and dysprosium – the key “magnet rare earths.”...
The U.S., Japan, Korea and the European Union will need new sources of rare earths in order to meet the needs of manufacturers that rely on them for applications in electronics, aerospace, medicine, medical equipment, automobiles and clean technology such as solar panels and wind turbines. The U.S. is reviving the American Mineral Security Act and Canada could play a key role in creating new supply chains of several critical materials named in the Act, including rare earths...
https://investorintel.com/market-analysis/market-analysis-intel/industry-bulletin-escalating-u-s-china-trade-war-leads-speculation-new-chinese-rare-earth-export-restrictions/