For years, the Chinese government has worked on controlling the exports of rare countries, groups of metals used in a range of products, as well as semiconductors and lights. Now, in its business war with the United States, China is moving to even further limit the market for these metals, which could have disastrous consequences for American production and military power. What exactly are these metals and why are they so important?
What are rare soils?
There are 17 types of metals known as rare soils that span the periodic table and are essential for industries such as technology, energy and transport. With names like Terbium, Praseodymium and Dysprosium are metals Important components For some of the most advanced technologies.
Rare soils can be sorted into two types: heavy and light. Severe rare soils have a greater atomic weight and are usually rare, which means they sell in smaller quantities and are susceptible to deficiency. On the other hand, light metals have less atomic weight. The two most important are Nesmumium and Praseodymium, which are primarily used to create magnets.
What are they used for?
The use of rare countries is extensive: semiconductor chips that strongly artificial intelligence; electric vehicles; fighter nozzles and missiles used by the US Army; Wind turbines; And LED lights found, among other things, in millions of households.
Many rare countries have chemical properties that make them heat resistant, so they can be used to create high quality magnets, glass, lights and batteries. Magnets made of rare countries are significantly stronger – and more valuable – than other types, especially in the production of electric cars.
Do the United States produce rare soils?
The United States has only one mine of operational rare countries in Mountain Pass, California, which produces about 15 percent of global rare countries.
It wasn’t always the case. In the age of 80, the United States was a leader in the production of rare soils and represented about a third of the global market. But in a tandem with a ten -year effort of China to take over the market control, the proportion of rare soils in the United States slowly declined until it almost ceased to exist at the beginning of 2000.
Where do rare soils come from?
Rare soils are mined from rock deposits in the Earth’s crust. With nearly 70 percent of the market, China is able to control the export and price of metals sold worldwide. In China, about 90 percent of rare soil magnets and 99.9 percent of the world dysprosia, which the nVidia chipmaker uses to create capacitors, is mined in China.
In recent years, rare soils have become an increasingly important geopolitical tool. Trump’s administration tried to convey an agreement to obtain rare countries of Ukraine rich in minerals in exchange for military support. Administration also spoke about the direct takeover of Greenland, partly because of the rich supply of rare soil.
What will be the impact of China restrictions on rare soil?
Without the corresponding offer of rare soils, American production for sectors, such as the automotive industry, would stop. Some American companies have been loading on rare countries in anticipation of trade war for years, but it is not clear how long these reserves will last if China has interrupted exports.
It could also affect the strategic objectives of the US Army, which could end with lack of drones, missiles and aircraft without rare countries. They could also be influenced by technology manufacturers such as Nvidia, whose chips are already scarce, along with smartphone manufacturers such as Apple.
While many rare soil mining operations in China have been private or even abroad for years, the Chinese government consolidated control of industry by gaining the largest local miners with state -owned companies, giving it complete control of production and export.
