Rare earth refer to a group of 17 elements that are prized for their unique magnetic and electrochemical specification.
They include elements such as gadolinium, lanthanum, cerium and promethium, and are vital in the production of cancer treatment drugs, we are mainly purchasing neodymium, praseodymium and other heavy rare earth for several types of rare earth magnetic materials manufacturing. Some people might wonder does other countries can compete with China in this market?
Countries last tried to cut their dependence back in 2010 during a dispute between China the Japan. Tokyo accused Beijing of halting supplies for political reasons. While rare-earth mines are also found in Malaysia, Brazil, Estonia, Australia, India, South Africa and Canada, to name but a few.
The US has a single rare-earth mine in operation, based in California. The Mountain Pass mine exports about 50,000 tonnes of rare-earth extract to China for processing, with tariff increasing from 10% to 25% after trade war.
However, Australian company Lynas, which is the only company based on rare earth industry without Chinese capital, signed an agreement at this May, with the Texas-based chemicals manufacturer Blue Line to build a processing plant in the US.
Some companies, such as Nebraska’s Rare Earth Salts, are reportedly recycling florescent light tubes for rare-earth elements that make up about 20% of the bulb.
One of our rare-earths suppliers have seen their share prices soar, as markets anticipate a surge in demand and higher prices, as a result of rises of rare earth magnetic materials.
Shares in Rainbow Rare Earth, which is listed on London’s alternative investment market, jumped nearly 15% amid fresh trade war threats, while China Rare Earth Holdings ended the day up 24% in Hong Kong.