China's Rare Earths and the Potential of Recycling: A Geopolitical Shift

Friday, 15 November 2024, 10:15

China's dominance in rare earths raises concerns as recycling emerges as a viable alternative. The US and allies could diminish dependence on China through effective recycling strategies. Hu Xinyue, an analyst at the Institute of Defence and Strategic Studies, highlights the potential for recycling to meet significant demand in the future.
Scmp
China's Rare Earths and the Potential of Recycling: A Geopolitical Shift

China's Rare Earths: A Key Player in Global Trade

China controls a staggering 60% of global rare earth mining and 85% of processing, making it a dominant force in this critical sector. The United States, recognizing reliance on China, is investing in alternative sources and recycling initiatives.

The Role of Recycling in National Security

Recycling rare earths from electronic devices presents an opportunity for the US to decrease dependence on China. According to Hu Xinyue, a senior analyst, such strategies could meet up to 40% of demand by 2050.

  • Increased tariffs on Chinese goods signify growing trade tensions.
  • China's strategy includes limiting exports to maintain geopolitical leverage.
  • Investment in domestic supply chains is crucial for national security.

Challenges Ahead

While recycling presents a viable path, challenges remain:

  1. High costs compared to new material extraction.
  2. Time needed to establish complete domestic value chains.
  3. Dominance in processing capacity poses significant obstacles.

As countries attempt to establish their rare earth production, a gradual shift in supply dynamics could reshape international relations.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe