
China Adds 7 Rare Earth Minerals to Export Ban List
Taarek Refaat
In response to punitive tariffs imposed by Washington, Beijing added seven rare earth minerals to its export restrictions list earlier this month.
With geopolitical and trade tensions escalating, China's dominance in the extraction and processing of these specialized minerals has become a leverage it uses against its adversaries.
In contrast, the United States lacks virtually any processing capacity for the targeted minerals, according to data from the consulting firm Project Blue.
Beijing said it imposed these restrictions because the minerals are used in advanced technologies and in the manufacture of powerful magnets, and are therefore considered dual-use materials, meaning they have both civilian and military applications.
"These products and elements directly influence the development of key technologies and support industries in other major markets... This gives China greater leverage in any negotiations," said David Merriman, research director at Project Blue.
Here are some of the key uses of the seven minerals—out of 17 normally classified as rare earth minerals—that are now on Beijing's banned list.
Terbium
This soft, silvery metal is used in light bulbs and produces bright colors on smartphone screens, according to the Royal Society of Chemistry.
Terbium increases the temperature tolerance of magnets used in aircraft, submarines, and missiles. The US Department of Defense says terbium is "one of the most difficult elements to secure," accounting for less than 1% of the total rare earth content in most deposits.
China exports up to 85% of its terbium to Japan, while other destinations include South Korea and the United States, which take about 5%, according to Bloomberg calculations based on Chinese customs data.
Yttrium
Yttrium is used in liver cancer treatments and in the production of lasers used in medical and dental surgery. It also increases the strength and resistance to heat and shock of alloys, making it ideal for high-temperature superconductors.
Yttrium is mined at the Mountain Pass mine in California, but the concentrate is exported for processing due to the lack of a fully commercial separation facility in the United States.
According to the U.S. Geological Survey, about 93% of U.S. imports of yttrium compounds came from China in the four years to 2023.
Dysprosium
The name of this shiny metal is derived from the Greek word meaning "hard to obtain."
Being resistant to high temperatures, dysprosium is primarily used in magnet alloys used in motors or generators.
The metal is particularly important for the transition to clean energy, as magnets are used in wind turbines and electric vehicles. A type of dysprosium is also used in control rods in nuclear reactors because it readily absorbs neutrons.
China ships more than half of its dysprosium to Japan, and about a tenth to South Korea, while only 0.1% goes to the United States. Australian company Lynas Rare Earths is expected to expand its dysprosium and terbium production plant in Malaysia by June.
Gadolinium
If you've ever had an MRI, you've likely received an injection of a gadolinium-based dye, which interacts with magnetic forces to improve the clarity of body parts in medical imaging.
Gadolinium is also effective in enhancing the performance of alloys, improving their resistance to high temperatures and oxidation, making it useful for metals used in magnets, electronic components, and data storage disks.
Its ability to absorb neutrons makes it a key component in the core of nuclear reactors.
Lutetium
This metal is hard and dense, unlike most other target elements, and is used as a chemical catalyst in oil refineries. The United States purchases almost all of its supply of this metal from China, which also exports a small amount to Japan.
Samarium
Samarium-cobalt alloys are on the United States' list of critical metals that can be stockpiled for reserve purposes.
Once commonly used in headphones, the metal is now used in supermagnets in turbines and automobiles. It has broader defense applications because it maintains its magnetic nature at high temperatures. Samarium is also used in optical lasers and nuclear reactors.
Scandium
The metal is named after Scandinavia because it was first discovered in northern Europe. Scandium can be extracted from mine tailings or as a byproduct of uranium or other mineral mining.
Baseball bats and bicycle tires may contain traces of scandium. Due to its low density and high melting point, the metal is also used in some fighter jet components.
Its radioactive properties make it ideal as a tracer in oil refining or for detecting leaks in underground pipelines.
The last time scandium was produced in the United States was more than 50 years ago, according to the U.S. Geological Survey.
The United States currently imports 14% of China's exports of scandium and yttrium combined, according to customs data, with Japan being the largest importer. Scandium is not currently produced in the European Union, but a project is scheduled to begin operations next year.
Off the List: Neodymium and Praseodymium
Neodymium and praseodymium were not targeted in this round of trade escalations, despite being among the most common rare earth elements due to their pivotal role in permanent magnet motors.
Neodymium and praseodymium convert stored electricity into motion, such as turning the wheels of an electric vehicle, and vice versa, converting motion into electricity, making them popular in wind turbines.
MP Materials reopened its Mountain Pass mine in California's Mojave Desert in 2018, the only operating rare earth mine in the country with refining capabilities.
Last year, the United States produced 1,130 tons of neodymium and praseodymium, according to Blue Project, while China produced more than 58,300 tons.
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