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Beijing Expands Control Over Rare Earth Exports and Demands Confidential Data from Companies, Leaving Europe and the United States Dependent on Strategic Chains
The rare earth exports have become a new field of global dispute. China, which is responsible for over 90% of the refining of these elements, has begun to impose restrictions and demand sensitive information from companies that depend on these resources for advanced technologies.
This movement has put Europe and the United States on alert.
Without guaranteed access to raw materials, entire sectors from electric vehicles to defense face risks of shutdown, revealing the fragility of their supply chains.
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The largest home appliance manufacturer in the world closed its factory in Argentina and decided that Brazil will absorb everything, transferring machines, production, and supply of entire markets to the unit in Rio Claro, São Paulo, with an investment of nearly R$ 200 million.
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The war in the Middle East has already cost Brazil $882 million in exports that did not leave the country in a single month, with pork falling by 59% and soybeans declining by 25%, and now the agribusiness sector is rushing to find new buyers before the losses double.
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Amid international war, rising diesel prices, and a lack of workers, pork enters a new scenario in Brazil that could curb consumption, raise prices, and change the dynamics of the sector in the coming months.
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The handshake that cost R$ 57 billion and started the delivery war in Brazil.
What Are Rare Earths
The so-called rare earths are 17 essential chemical elements for the modern industry.
Although they are not actually scarce, their processing is highly complex, costly, and polluting.
They are used in permanent magnets, wind turbines, electric cars, smartphones, fighter jets, and even aerospace applications.
According to experts like geographer Julie Klinger, quoted by DW Brasil, their magnetic and conductive properties make them irreplaceable in strategic sectors.
The problem is not in geological availability, but in China’s dominance over mining, processing, and refining.
China’s Dominance
Today, China controls up to 70% of mining, 87% of processing, and over 90% of refining of rare earths in the world. In addition, it concentrates 94% of permanent magnet production, a vital input for both civil and military industries.
This power is the result of decades of strategic planning, state subsidies, and research investments. While the West outsourced production and mining, Beijing consolidated a nearly monopolistic position.
Growing Trade Tensions
In 2023, in response to tariffs imposed by Washington, Beijing restricted exports of seven critical elements, impacting especially the U.S. defense sector.
European companies have also been forced to halt operations, according to investigation by DW Brasil.
In addition to the restrictions, Beijing has begun to require companies to provide confidential data on the use and demand for rare earths to issue export licenses.
This exposed companies to dilemmas of strategic security and protection of intellectual property.
The European Search for Alternatives
Europe has already attempted to develop local projects, such as in Storkwitz, Germany, but costs have made exploration unviable compared to Chinese prices.
The most promising discovery occurred in 2023 in Sweden, with state-owned LKAB announcing the largest deposit on the continent.
Even so, experts warn that it’s not enough to have identified deposits. It is necessary to create the entire value chain of mining, processing, and refining, something that took decades for China to consolidate.
Without coordinated investment, the risk of dependence will continue.
The rare earth exports currently represent one of the major strategic dilemmas for the West. While China imposes barriers and collects sensitive information, Europe and the United States are seeking solutions to reduce vulnerabilities in vital sectors.
Do you believe that Europe will be able to create its own rare earth chain? Or is dependence on China inevitable?
Leave your opinion in the comments; we want to hear from those closely following this strategic clash.
Isto é velho……tava programado a mais de dez anos….só vão vender o material já manufaturado.
O gafanhoto é visto como bonzinho …..aqui na bananalandia.
Bom são os gazelas aviadadas, invadindo, roubando e matando nativos!
A China vai crescer com ou sem choro seu!
O mundo vai acabar para os Estados Unidos. A China daqui 100 anos vai ser o país dominante sem precisar dar um tiro. A China vai se impor como Líder Mundial da humanidade sem criar crises de histerias xenófobas.
Os Estados Unidos, perdem muito tempo especulando. Uma hora a conta chega.