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Newspaper Nikkei On March 11, the United States, Japan, India and Australia are building a chain of rare earth purchases to counter China’s dominance. Beijing currently produces almost 60% of the world’s rare earths. The country’s market power raises supply concerns.
The Quadrilateral Security Dialogue states (referred to as “Quad”) intend to counter China’s dominance by cooperating to fund development projects and new manufacturing technologies, while at the same time being the first in the drafting of international rules.
Initially, they will focus on introducing low-cost radioactive waste filtration technology, arranging for government-affiliated financial institutions to make loans to mining and refining companies. The US government has supported Australia’s ore disposal plan in the US and Japan is considering joining this deal or not.
From left to right: US President Joe Biden, Indian Prime Minister Narendra Modi, Australian Prime Minister Scott Morrison and Japanese Prime Minister Yoshihide Suga. Photo: India Today
Leaders of the “Quartet”, including US President Joe Biden, Japanese Prime Minister Suga Yoshihide, Indian Prime Minister Narendra Modi and Australian Prime Minister Scott Morrison, will attend an online meeting on March 12 to “confirm the plan. to reduce dependence on rare earth produced by China. “
The leaders are also expected to share their concerns about China’s maritime provocations. Furthermore, they will most likely agree to cooperate in supplying the Covid-19 vaccine to developing countries.
Many of the top tech companies rely on rare earths made in China, such as neodymium, essential for electric vehicles, and lithium, which is used in batteries. These metals are also essential for wind turbines and other “decarburized” infrastructure.
According to Nikkei, China has a near monopoly on rare earth separation and refining, leading to environmental concerns and soil destruction. Meanwhile, the US exports locally produced rare earth minerals to China and then imports 80% of the refined rare earths.
The US Geological Survey (USGS) said that by 2020, China accounted for 58% of global rare earth production, up from 90% four years ago. The reason is that the United States and Australia are gradually increasing their own rare earth production.
China views rare earths as a strategic resource and has used its near-monopoly position as a diplomatic bargaining chip. In 2010, China’s rare earth supply to Japan was suspended after Tokyo claimed ownership of the Senkaku Islands (called Diaoyu by China). After China stopped shipping rare earths, the prices of some metals rose nearly nine times.
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