Thread by @WholePicture_

According to media reports, China's authorities are considering restricting rare earths exports. At the same time, the government announced that it would sharply increase the production quotas for the current year.
nzz.ch/pro-global/per…
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Booted up vigorously

China's rare earth production, in tons per year (in thousands)
by @NZZ
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About 80 percent of all rare earths consumed worldwide come from China.
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In 2019, China exported just over 45,000 tons of rare earths with a total value of almost $ 400 million, according to Chinese customs authorities.
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China also has an outstanding position when it comes to processing rare earths. The country controls four fifths of the world's rare earth refining capacity. In some cases, ores extracted in the USA have to be processed further in China.

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Rare earths are a group of 17 metals. They are required for almost all modern products from smartphones to headphones and wind turbines to guided weapons. Their catalytic properties also make them indispensable for electric motors and batteries.
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In the recent past, China had to import rare earths due to the great demand.

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In addition, China can use its prominent position in the production of rare earths as a means of pressure, for example against the USA, which wants to cut China off from supplies of important technologies. Beijing has done this twice in the past:
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During a diplomatic crisis with Japan in 2010, China stopped exports to the neighboring country. As a result, prices went through the roof.

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In 2019, China threatened to use its important position in the production of rare earths as leverage in the trade dispute with the United States.
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China has achieved its prominent position by keeping supply tight in the past and thus driving up prices.

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First and foremost, the USA, but also other countries, have massively shut down their production facilities and shut down mines and refineries, primarily to protect the environment.
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The mining and processing of rare earths are extremely harmful to the environment. In the meantime, China has implemented stricter environmental standards for the extraction of rare earths.
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Our assessment: China's dominance in the rare earths market could wane in the coming years. As early as 2010, in addition to a few other countries, the USA also reopened closed mines.
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However, due to the technical complexity, it will take a few years before they can produce on a larger scale again. There are large deposits in Brazil, Vietnam, Russia and India.

The new American administration has apparently recognized the explosiveness of the issue. This week, President Joe Biden signed an executive order governing the establishment of supply chains that are independent of China.

The US wants to work with countries like Japan, South Korea and Taiwan. We are talking about cooperation in semiconductors, medical protective clothing, batteries for electric cars and rare earths.