Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

What Would We Do Without Rare Earths?

What Would We Do Without Rare Earths?

China still produces the vast majority of the world's rare earths. What if the country were to cut off supplies to the rest of the world?

The issue of creating a secure rare earth supply outside of China is one that most within the rare earth space are familiar with. 

China is still responsible for roughly 95 percent of the world’s production of rare earth elements, and has gotten itself in hot water with the World Trade Organization (WTO) for imposing export quotas in the past. However, outside of the space, the general public is blissfully unaware of the importance of rare earths in their daily lives, never mind the dangers that a lack of supply would pose.

That’s where Silicon Valley author Ann Bridges comes in. Her book,”Rare Mettle,” shines a light on the difficulties that might arise from a fictional Chinese embargo of rare earth elements. Both government and private industry interests are affected, and challenges escalate quickly for both parties in the fast-paced novel.

Lack of secure rare earth supply

Certainly, a Chinese embargo on rare earths isn’t an impossible scenario. In 2010, China cut off rare earth exports to Japan following an incident between the Japanese Coast Guard and a Chinese fishing boat. That issue was resolved fairly quickly, but the US and other countries are still largely dependent on China for rare earths.

While the overall question of a secure rare earths supply is now getting a bit more attention, Bridges believes that the public is still not nearly as aware enough of the rare metals that are so important to our daily lives.

“I think what’s happening with China from a political perspective is fascinating to me,” she said. “I think that the General Accounting Office reports that are coming out on the Pentagon and the department of defense’s lack of solutions is getting attention in the political dialogue now.”

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