2024-10-01 21:52:30
China has turned to lead production of the electric car and everything that surrounds it. When in Europe we were still thinking about improving emissions cycles and avoiding cheating with the testing of diesel cars, in the Asian country they took positions that are now paying off.
Among the decisions that were made, China gained almost total control of rare earths and their processing. As required East Asia Forumit is estimated that China has achieved between 50 and 60% of the mining market share. It is nothing compared to controlling 80% of the processing of these minerals, as reported last year by the Financial Times.
To have a better general picture, the United States Geological Survey assures that approximately 78% of the imports that arrive in its country of rare earths have China as their origin. The position is so strong that more than 60% of the world’s production of batteries for electric cars is under its control.
All this has placed China in a dominant position which allows you to manage at will an enormous number of variables and production systems essential to carry out the production of your batteries. Its power is such that the United States and Europe are striving to counteract it and loosen, little by little, the belt that suffocates them.
But when China is interested, it moves the buckle and overcomes a new hole. His latest decision demonstrates this.
The new Chinese ban
As reported, the latest step taken by the Chinese Government has been the ban on exporting technology to make rare earth magnets. These magnets are essential in electric car motors, although they are also used in the production of wind turbines and other electronic products.
The decision comes at a key moment for the control of the 17 chemical elements. My colleague Carlos Prego reported last year that the United States and Europe are striving to advance technologies to mine and process these minerals, but also the United Kingdom, Australia and Türkiye.
“We cannot allow countries like China to use their market position in key raw materials, technologies or products to disrupt our economy or exert unwanted geopolitical influence,” Janet Yellen, US Treasury Secretary, encouraged at the time.