China Bans Export of Rare Earth Processing Tech Over National Security

BEIJING — China, the world's top processor of rare earths, banned the export of technology to extract and separate the critical materials on Thursday, the country's latest step to protect its dominance over several strategic metals.

Rare earths are a group of 17 metals used to make magnets that turn power into motion for use in electric vehicles, wind turbines and electronics.

While Western countries are trying to launch their own rare earth processing operations, the ban is expected to have the biggest impact in so-called "heavy rare earths," used in electric vehicle motors, medical devices and weaponry, where China has a virtual monopoly on refining.

"This should be a clarion call that dependence on China in any part of the value chain is not sustainable," said Nathan Picarsic, co-founder of the geopolitical consulting firm Horizon Advisory.

China's commerce ministry sought public opinion last December on the potential move to add the technology to its "Catalog of Technologies Prohibited and Restricted from Export."

It also banned the export of production technology for rare earth metals and alloy materials as well as technology to prepare some rare earth magnets.

The catalog's stated aims include protecting national security and public interest.

China has significantly tightened rules guiding exports of several metals this year, in an escalating battle with the West over control of critical minerals.

It introduced export permits for chipmaking materials gallium and germanium in August, followed by similar requirements for several types of graphite since Dec. 1.

West struggles with rare earth technology

The move to protect its rare earth technology comes as Europe and the United States scramble to wean themselves off rare earths from China, which accounts for nearly 90% of global refined output.

China has mastered the solvent extraction process to refine the strategic minerals, which Western rare earth companies have struggled to deploy due to technical complexities and pollution concerns.

Ucore Rare Metals UCU