{"id":162273,"date":"2025-04-16T20:31:25","date_gmt":"2025-04-16T15:01:25","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=162273"},"modified":"2025-04-16T20:31:25","modified_gmt":"2025-04-16T15:01:25","slug":"rare-earth-elements-crisis","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/rare-earth-elements-crisis","title":{"rendered":"Rare Earth Elements Crisis"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Recently, China<\/span><b> announced restrictions on the export of seven rare earth elements.<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The<\/span><b> restricted elements<\/b><span style=\"font-weight: 400;\"> include<\/span><b> samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These elements are<\/span><b> vital for manufacturing high-tech and defense-related products, <\/b><span style=\"font-weight: 400;\">such as magnets for wind turbines, spacecraft, and electronics.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Chinese Dominance in Rare Earths<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China supplies<\/span><b> 85\u201395% of the world\u2019s rare earth demand <\/b><span style=\"font-weight: 400;\">and<\/span><b> leads in both mining and refining.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Although rare earth elements are not inherently rare, <\/span><b>China holds a strategic advantage due to concentrated and economically viable deposits <\/b><span style=\"font-weight: 400;\">and <\/span><b>advanced refining capabilities.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China has also acquired some of the <\/span><b>world\u2019s richest rare earth minerals deposits.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Chinese companies have spent more than US$10 billion<\/span><b> acquiring mining and critical mineral assets in Africa <\/b><span style=\"font-weight: 400;\">between 2023 and 2024.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Reasons for the Restriction<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strategic Leverage<\/b><span style=\"font-weight: 400;\">: China views rare earths as strategic assets and uses export controls to assert geopolitical influence, as seen during past disputes with Japan and the US.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>National Security<\/b><span style=\"font-weight: 400;\">: The Chinese government cited the need to safeguard<\/span><b> national security and fulfill non-proliferation obligations as key reasons<\/b><span style=\"font-weight: 400;\"> behind the latest export restrictions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trade Retaliation:<\/b><span style=\"font-weight: 400;\"> The move is a direct response to recent US tariffs and growing trade tensions, reflecting Beijing\u2019s intent to counter economic pressure with critical resource control.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market Control<\/b><span style=\"font-weight: 400;\">: By restricting exports, China aims to manage domestic supply, stabilize prices, and maintain its global dominance in rare earth mining and refining.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Global Implication of Chinese Restriction<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supply Chain Disruption<\/b><span style=\"font-weight: 400;\">: China\u2019s export restrictions on rare earths like dysprosium and yttrium pose a major threat to global supply chains in electronics, electric vehicles, and defense industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inflation: <\/b><span style=\"font-weight: 400;\">Market panic has led to stockpiling and projected price hikes, with dysprosium expected to rise from $230\/kg to $300\/kg,<\/span><b> impacting wind turbines and missile systems.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trade Weaponisation: <\/b><span style=\"font-weight: 400;\">Beijing&#8217;s move reflects<\/span><b> strategic trade weaponisation<\/b><span style=\"font-weight: 400;\">, echoing its <\/span><b>2010 rare earth embargo on Japan<\/b><span style=\"font-weight: 400;\">, highlighting how China uses minerals for geopolitical leverage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trade Diversification: <\/b><span style=\"font-weight: 400;\">Nations like the<\/span><b> US, Japan, and EU are urgently seeking alternate sources<\/b><span style=\"font-weight: 400;\"> and recycling technologies, as dependence on Chinese refining causes<\/span><b> costly delays in automotive and renewable energy sectors.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Japan\u2019s dependency<\/b><span style=\"font-weight: 400;\"> on China\u2019s REEs dropped from<\/span><b> 90% in 2010 to 60% in 2023.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Implications for India<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>India\u2019s industries reliant on rare earths<\/b><span style=\"font-weight: 400;\">, such as electronics, defense manufacturing, and green energy, face heightened risks of supply disruption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India must reassess its<\/span><b> strategic autonomy and supply resilience <\/b><span style=\"font-weight: 400;\">in the face of China\u2019s export control and U.S.-China trade tensions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The broader context of the <\/span><b>U.S.-China tariff <\/b><span style=\"font-weight: 400;\">wars have placed India in a<\/span><b> diplomatically sensitive position,<\/b><span style=\"font-weight: 400;\"> as it balances relationships with both global powers.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>India\u2019s Initiatives to Secure Rare Earth Supply<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Domestic Resource Development:<\/b><span style=\"font-weight: 400;\"> India possesses rare earth reserves, primarily managed by <\/span><b>Indian Rare Earths Limited (IREL<\/b><span style=\"font-weight: 400;\">), and is working to enhance domestic exploration and refining capabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>International Collaborations: <\/b><span style=\"font-weight: 400;\">India has engaged in resource and<\/span><b> technology-sharing agreements with countries like Australia and Japan<\/b><span style=\"font-weight: 400;\"> to diversify and secure rare earth supplies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stockpiling and Recycling<\/b><span style=\"font-weight: 400;\">: Inspired by J<\/span><b>apan\u2019s post-2010 strategy, India is considering rare earth stockpiling <\/b><span style=\"font-weight: 400;\">and increasing focus on urban mining and recycling of electronic waste.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strategic De-risking: <\/b><span style=\"font-weight: 400;\">India supports the global move to<\/span><b> \u201cde-risk\u201d supply chains<\/b><span style=\"font-weight: 400;\"> by reducing dependence on a single source (i.e., China) while maintaining essential trade ties.<\/span><\/li>\n<\/ul>\n<span class=\"vc_button\"><b>Additional Reading: <\/b><a href=\"https:\/\/pwonlyias.com\/stage\/current-affairs\/critical-minerals-in-india\/\" target=\"_blank\" rel=\"noopener\"><b>Rare Earth Minerals<\/b><\/a><\/span>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; text-align: center;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Also Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Editorials<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Current Affairs<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" 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elements.<\/p>\n","protected":false},"author":11,"featured_media":162249,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[],"subject":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/162273"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=162273"}],"version-history":[{"count":2,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/162273\/revisions"}],"predecessor-version":[{"id":162277,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/162273\/revisions\/162277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/162249"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=162273"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=162273"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=162273"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=162273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}