Bota Posted on 2025-02-04 15:45:00

Why did China restrict exports of critical minerals? - Aimed at strengthening global dominance in technology and military

From Kristi Ceta

Why did China restrict exports of critical minerals? - Aimed at strengthening

China announced sweeping export controls on Tuesday, targeting five metals important to defense, clean energy and other industries. The move came after U.S. President Donald Trump imposed an additional 10% tariff on Chinese goods.

The decision to restrict tungsten and indium, among other metals, is China's latest attempt to increase its dominance in mining and processing minerals critical to everything from smartphones and electric car batteries to infrared missiles and munitions.

But which minerals have been restricted by Beijing since 2023?

Battery, lithium and gallium processing technology

China proposed to restrict the export of certain technologies used to produce modern battery components and process critical minerals such as lithium and gallium.

The January announcement did not say when the proposed changes, which were open for public comment until early February, might take effect.

Antimony, gallium, germanium

Beijing banned the export of three critical minerals to the United States in response to Washington's measures against the chip sector.

The outright ban only applies to the United States, however over the previous 18 months, China has steadily imposed export licensing regimes for the three metals.

In the case of antimony, a strategic metal used in solar energy equipment and munitions, exports to major buyers such as Japan, India and South Korea had resumed three months after export licenses were introduced.

China controls the supply of these three metals, producing or refining between 50% and 90% of the world's supply.

Rare earth magnet technology

In December 2023, China banned the export of technology for producing rare earth magnets, adding it to an existing ban on technology for extracting and separating critical materials.

Rare earths are a group of 17 metals used to create magnets, which convert energy into motion in electric vehicles, wind turbines, and the electronics field.

Although it is a material found in the earth's crust, China has mastered the refining process, which is technically difficult and environmentally harmful. The country produces almost 90% of the global refined total.

LEAD

In October 2023, China said it would require export permits for some graphite products to protect national security. Beijing is the world's largest producer and exporter of graphite, and also processes more than 90% of the total, a material used in almost all electric car batteries.

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