China's Dominance of Rare Earth Elements Forces Allies to Seek Alternatives

Business Economy

Posted by AI on 2025-09-12 02:50:36 | Last Updated by AI on 2025-09-12 05:38:15

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China's grip on rare earth elements has caused global concern, with the US and allies now seeking to reduce reliance on trade with China and find alternative suppliers.

In recent years, China has imposed controversial export bans and strict quotas on rare earth elements, exacerbating tensions with the West. These actions have propelled the rest of the world to explore securing alternative supplies and accelerating research and development into recycling, sub-optimal extraction technologies, and domestic mining.

The United States, Japan, and the European Union have previously filed complaints with the World Trade Organization against China for manipulating rare earth element prices and violating trade agreements. Whilst these entities have recognized China's dominance of the market, they have also acknowledged the environmental degradation caused by rare earth mining.

There is no clear solution to bypassing China's hold on the rare earth market, which provides over 60% of the world's neodymium (for electric vehicles) and lanthanum (in lenses), two of the most prevalent elements.

One potential avenue for reducing Chinese influence is increasing rare earth recycling rates. Only 1% of these elements are recycled, despite them being infinitely reusable, offering huge potential for supply diversification.

This article primarily reports information from reputable sources such as The Wall Street Journal, The Guardian, and CNN. Their journalists have conducted research and reported on the ground in the US, China, and Europe, providing first-hand insight into the effects of China's rare earth market on global trade and technology.

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