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China has completely stopped The export of rare criticisms. In fact, during the last year and a half this Asian country has used its dominance over rare earths as A pressure tool on your rivals. On December 21, 2023, the administration led by Xi Jinping decided to restrict the export of some of its rare earth processing technologies, and this was only the tip of the iceberg.
The last kick linked to these important metals was given by China to the US on April 4. Just 24 hours after Donald Trump announced the taxes that he was going to apply to the importation of most products from abroad, the administration led by Xi Jinping replied. And he did it with forcefulness. In early December 2024 He chose to prohibit The export of some critical minerals to the US, among which were three essential metals: gallium, Germanio and antimony.
The European electric car can suffer if China continues with the hand brake
This story does not end here. At the beginning of last April the Chinese government added two more critical metals to its list of export restrictions: Scandio and Disposio. These chemical elements are probably less known than metals prohibited by China previously, such as Gallium or Germanio, but are at least as important as the latter because they have a fundamental role in the industries of integrated circuits, telecommunications and the manufacture of storage devices.
And just two weeks later, in mid -April, the administration led by Xi Jinping did not hesitate to take another step forward with the purpose of putting in check, in addition to the industries that I just mentioned, those of electric cars, aeronautics and advanced armament. And is that, according to The New York Times, has effectively suspendedin addition to the export of the most valuable rare earths, that of the elements involved in the manufacture of high -power magnets that have a critical role in the industries that I have cited in this same paragraph.
Chinese authorities are taking the high -power magnets acquired by electric cars manufacturers throughout the country
Chinese authorities are retaining in ports throughout the country not only rare earths, but also high -power magnets acquired by electric cars manufacturers throughout the planet, aerospace companies, chip factories and armament companies. Many of these organizations have high -power magnet reserves made with rare earths, but possibly only allow them to subsist a few months.
For many years China has produced More than 90% of rare earths. Australia, Vietnam, Myanmar, Canada, Brazil, Tanzania or the US, among other countries, also produce these metals, but the largest deposits located so far of these elements reside in China. And, curiously, the country led by Xi Jinping too The processing industry dominates to which it is necessary to submit rare earth so that they can be used. So much so that its quota if we stick to the global processing industry amounts to 90%.
China’s export controls are directed mainly to the US, but Europe is not unscathed. At least for the moment. In fact, in Germany, which as we all know is the heart of the European car industry, There are already experts who assure that if China continues to retain rare earths and electric motors some essential parts of the electric cars production chain They will stop in no more than six weeks. For the European car industry this blow would be very difficult to fit. However, while still having some reservations Europe has the opportunity to negotiate with China to avoid this very difficult situation. Everything is not lost yet.
Image | Xataka
More information | Automobilwoche
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