China to cut rare mineral exports
The move is sure to provoke strong reaction and experts warned of serious implications for green energy projects including the development of the electric car for popular use.
China is responsible for 95% of global rare earth production and about 60% of consumption currently originates from there, according to the US Geological Survey.
Experts warned previously that Beijing’s plan to ban exports of key raw materials as of 2015 is a cause for concern among manufacturers of high-tech products ranging from wind turbines to mobile phones, and computers to electric car batteries.
In June, an EU expert group identified rare earths among a group of 14 raw materials seen as “critical” for EU high-tech and eco-industries. It suggested that the European Union’s global diplomacy should be geared up to ensure that companies gain easier access to them in future.
In October, German high-tech companies reported their first supply shortages of rare earths following a rapid diminution of Chinese export quotas on the precious metals.
A report by Spiegel Online on October 22 said China’s blockade of shipments of rare earth metals is already causing some German companies to suffer shortages.
German companies say they are being pressured by Chinese officials to increase their investment in China if they want to be assured of access to rare earth minerals.
Since 2005, China has imposed a “rapid diminution of export quotas” on a number of rare metals and is understood to be planning a full export ban as of 2015.
Although reserves are sufficient, over 95% of production is currently located in China and it is feared that potential supply disruptions will hamper the development of the green economy.
German economy minister Rainer Brüderle said then that attempts to monopolise rare earths presented a global challenge that needs to be addressed at the G8 and G20 without delay.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
