Scientists warn China’s rare earth industry has critical weakness,

China’s dominance in rare earth mining, refining and exports has long been viewed as a strategic advantage.

But a new study by Chinese researchers argues that the country’s rare earth industry has its own critical weakness.

“China is not in a leading position in mastering key core technologies in certain fields,” the scientists wrote in the paper.

Although these elements are relatively abundant in Earth’s crust, economically recoverable concentrations are uncommon, and separating individual rare earths is technically complex and capital intensive.

Mining is only the first stage of the rare earth value chain. Producing usable materials requires:

  1. Mining
  2. Ore concentration
  3. Chemical cracking
  4. Solvent extraction
  5. Oxide production
  6. Metal refining
  7. Alloy production
  8. Magnet manufacturing

Countries that invest across this entire chain capture far more economic value than those that export raw ore alone.