Rare earths remain key issue in US-China trade tensions

Record ID: 1969614

  • Title: Rare earths remain key issue in US-China trade tensions
  • Date: 15th April 2025
  • Summary: Rare earths remain key issue in US-China trade tensions SHOTLIST: ESKISEHIR, TÜRKİYE (16 APR, 2023) (ANADOLU-ACCESS ALL) (FILE VIDEO) 1. VAROUS DRONE SHOTS OF RARE EARTH ELEMENT COMPLEX 2. VARIOUS OF RARE EARTH ELEMENTS ESKISEHIR, TÜRKİYE (9 MAY, 2023) (ANADOLU-ACCESS ALL) (FILE VIDEO) 3. UNPROCESSED RARE EARTH ELEMENTS AT COMPLEX (2 SHOTS) 4. VARIOUS DRONE SHOTS OF RARE EARTH ELEMENT COMPLEX 5. VARIOUS OF FIGHTER JETS IN PRODUCTION FACILITY 6. VARIOUS OF PRODUCTION OF SPACE ROCKET, SATELLITE AND CAR 7. UNPROCESSED RARE EARTH ELEMENTS AT COMPLEX FORTH WORTH, US (JUNE 21, 2018) (USERS MUST CREDIT “LOCKHEED MARTIN” HANDOUT —EDITORIAL USE ONLY) (FILE FOOTAGE) 8. VARIOUS OF F-35 FIGHTER JET ON DISPLAY DURING THE REPUBLIC OF TÜRKİYE F-35 ROLLOUT CEREMONY FORTH WORTH, US (RELEASED IN JUNE 2018) (USERS MUST CREDIT “LOCKHEED MARTIN” HANDOUT —EDITORIAL USE ONLY) (FILE FOOTAGE) 9. VARIOUS OF F-35 FIGHTER JETS TAKING OFF 10. VARIOUS OF F-35 FIGHTER JETS FLYING 11. VARIOUS OF F-35 FIGHTER JET LANDING AND TAXIING 12. F-35 FIGHTER TAXIING 13. F-35 FIGHTER JET TAKING OFF 14. VARIOUS OF F-35 FIGHTER JETS FLYING SAN FRANCISCO, CA, UNITED STATES (JANUARY 06, 2024) (ANADOLU - ACCESS ALL) (FILE FOOTAGE) 15. VARIOUS OF TESLA CYBERTRUCK IN SAN FRANCISCO ANKARA, TÜRKİYE (ARCHIVE - NOVEMBER 12, 2024) (ANADOLU - ACCESS ALL ) (FILE FOOTAGE) 16. VARIOUS OF TESLA'S ELECTRIC TRUCK, CYBERTRUCK BEING EXHIBITED AT MALL PALO ALTO, CALIFORNIA, US (SEPTEMBER 22, 2023) (AAVN – ACCESS ALL) (FILE FOOTAGE) 17. CUSTOMERS CHECKING NEW iPHONE 15 SMART PHONES IN APPLE STORE 18. CLOSE-UP OF PHONES ON DISPLAY (2 SHOTS) 19. APPLE EMBLEM ON GLASS ENTRANCE OF STORE / CUSTOMERS CHECKING PHONE / PHONES SHOWCASED ON TABLE 20. CLOSE-UP OF PHONES ON TABLE 21. CUSTOMERS CHECKING PHONES 22. iPHONE 15 SMART PHONES SCRIPT Rare earth elements (REEs) remain a critical point of leverage in US-China trade tensions, as Beijing continues to wield its dominance in rare earth production amid escalating tariff disputes. The US heavily relies on China for rare earth metals, which are essential in manufacturing advanced technology, defense systems, and renewable energy products. China, which leads global REE production, has taken steps to tighten control over exports of these strategic materials—often in response to US trade policies. Donald Trump, during his first presidential term, imposed tariffs on Chinese goods in March 2018, prompting China to respond by restricting REE exports. The latest restrictions came on April 4, just two days after new US tariffs were announced. China currently accounts for 69% of the world’s rare earth production and holds 49% of the estimated 90 million tons of global reserves, according to the US Geological Survey’s 2024 data. China is followed by Brazil with 21 million tons, India with 6.9 million tons, Australia with 5.7 million tons, Russia with 3.8 million tons, and Vietnam with 3.5 million tons. The US, Greenland, and Tanzania each account for 2% of the global REE reserves. China has a capacity to process close to 90% of REEs, which makes the world depend on Beijing as a supplier for clean energy and high-tech sectors. China’s dominant position in the REE field allows it to have great control over both the supply and the pricing of these metals, posing a risk to other countries. Western countries have been trying to accumulate their own REE reserves in recent years to diversity imports, thereby reducing dependence on China and Russia. China can produce all of the 17 REEs on the periodic table ever since it discovered its first and largest reserve in 1927 in the Inner Mongolia Autonomous Region. The Bayan Obo Rare Earth Mine in western Inner Mongolia accounts for 83.7% of China’s total reserves and 37.8% of global reserves. China imposes export controls on seven rare earth metals, namely samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. Exporting these elements now requires special approval from the Chinese Commerce Ministry. The restrictions apply to the entire supply chain, from raw extraction to finished products. Analysts say Beijing made this move to impact key US sectors, such as defense and renewable energy, as the US sources about 89% of its rare earth from China and these restrictions affect the supply of raw materials for F-35 fighter jets and Tesla electric vehicles.
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  • Reuters ID: OWANACAAVIDEO2025041537642742
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  • Copyright Holder: Anadolu Agency
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