Rare earth controls tightened

SHANGHAI (EFE).— Chinese authorities have tightened their control over rare earths, materials of which they control more than 80% of global production and which are key to the manufacture of chips, electric vehicles and military equipment, by publishing a new law for the sector this weekend.

China’s State Council on Saturday released “regulations for the management of rare earth elements,” the country’s first comprehensive set of rules governing the mining, smelting and circulation of the 17-element metal.

This provision, which consists of 32 articles and will come into force on October 1, establishes that rare earth resources “belong to the State and no organization or individual may claim or destroy them,” and that the State will be responsible for “implementing protective mining” of the deposits.

The authorities also announced that they will develop a “unified plan” for the development of the rare earth sector and that they will “control the total amount of mining, smelting and separation of rare earths”, establishing a system of “traceability” of the products and “strictly managing” their circulation.

The new regulations stipulate a series of fines for violations, which can reach an amount up to 10 times higher than the “illegal profits” obtained by breaking the law, for example by mining, smelting, processing, buying or selling rare earths or derived products outside the control of the government.

Rare earths are a group of 17 elements that are essential for the manufacture of batteries, magnets for electric vehicles, turbines for windmills and mobile phones, as well as for the aeronautical and defence industries, and whose global supply is controlled by China.

In recent years, there has been speculation that China, the world’s largest producer of rare earths, may be using these materials as a tool of pressure in the context of its trade and technology war with the United States, which is trying to increase the supplies it obtains at home and from allies such as Australia.

Take a look

European dependency

China provides the European Union with 98% of its rare earths, creating a situation of strong dependence on these materials.

Suspension of export

In December, Beijing suspended the export of technologies needed to process rare earths.

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