Taiwan media Liberty Times on the 3rd published an article titled 'China's weaponization of rare earths backfires, accelerating the global construction of heavy rare earth (heavy rare earth elements) supply chains.'

The article pointed out that 'rare earth permanent magnets have become a central point of contention in the trade war between China and its competitors.' It explained, 'Last year, the Chinese government utilized export restrictions on these products to extract concessions from its opponents in response to the U.S. Trump administration's tariff policies. A similar strategy was also employed during diplomatic friction with Japan.'

On the other hand, citing a Bloomberg column article, it commented, 'Each time China strengthens its regulations on rare earths, countries around the world become more familiar with how to procure rare earths. As a result, as various countries take countermeasures, China is forced to narrow its own scope of impact.'

The same column article pointed out, 'About 15 years ago, almost all rare earths mined and refined globally were produced in China, but this situation has significantly changed due to the threat of supply disruptions over many years.' It added, 'Currently, approximately one-third of the world's rare earth production is supplied by countries other than China, forcing the Chinese government to shift its focus to the rarer elements among rare earths.'

Furthermore, it stated, 'Since conventional rare earth magnets lose their magnetism at high temperatures, the use of heat-resistant heavy rare earths is essential in high-performance fields such as electric vehicles (EVs), wind power generation, and aircraft. Samarium, dysprosium, and terbium, in particular, are important elements whose supply China has almost monopolized.' It also suggested that in recent years, the development of alternative materials and the discovery of new deposits have progressed, and the supply chain for heavy rare earths is also changing towards reducing dependence on China.

Following that, it mentioned the ion-adsorption type deposit recently discovered in Longnan District, Jiangxi Province, China, stating, 'While certainly rare, it is not unique.' It reported, 'Since the mid-2010s, when China began strictly controlling rare earth production, Chinese mining companies sought opportunities abroad, discovering abundant heavy rare earth deposits in Myanmar's Kachin State and proceeding with mining. While the reserves in that region may exceed those within China, environmental problems caused by uncontrolled small-scale mining have also been pointed out.'

It then stated, 'The construction of supply chains is also progressing outside of China,' and introduced that 'in Brazil, ion-adsorption type deposits in Goiás State were investigated and production began in 2024 with investment. Currently, USA Rare Earth, a U.S. company, is advancing a large-scale acquisition plan worth $2.8 billion.' It also emphasized, 'Research published last year confirmed traces indicating the existence of ion-adsorption type deposits on four continents, including Madagascar, Malawi, Uganda, Chile, and Australia. Furthermore, evidence of similar deposits has been found in Malaysia, Thailand, Vietnam, and Finland.'

The article reported that 'companies outside China with specialized technology to process these ores are advancing the construction of separation production lines to extract dysprosium, terbium, and samarium.' It also conveyed that 'Lynas Rare Earths and Neo Performance Materials have already achieved commercial production, and MP Materials and Kalester, USA Rare Earth's partner, are also expected to commence operations within a few months.'

Finally, it commented, 'These developments serve as a clear warning to countries that attempt to obstruct the free flow of global mineral resources for geopolitical gains.' It added, 'China is trying to cut off its competitors' access to rare earth magnets, but paradoxically, its actions are promoting the formation of a global industry that can supply these resources in greater abundance than ever before.' (Translation/Editing: Kitada)