Rare Earth Production Halved in China... Jiangxi Province, the Largest Producer, Halts 50% of Output

On-site Investigation by Central Government Ecological Environment Protection Survey Team Until the 7th of Next Month
China's Environmental Actions Seen as Justification, Suspected of Weaponizing Rare Earths Targeting the US and Others

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China will reduce rare earth production by about half until the end of April due to environmental concerns. Rare earths, called the rice of the 4th Industrial Revolution, refer to 17 elements including Lanthanum (La), Cerium (Ce), Neodymium (Nd), and Praseodymium (Pr), and are used as key raw materials in advanced products such as semiconductors, smartphones, electric vehicles, and lasers. China is the largest producer and exporter of rare earths.

China's state-run Global Times reported on the 9th that 40-50% of rare earth mining companies located in Ganzhou City, Jiangxi Province, the largest rare earth production area, will halt production until the end of April. The media explained that production was temporarily suspended ahead of an on-site investigation of rare earth mining in Jiangxi Province by an ecological and environmental protection inspection team dispatched by the central government. The inspection team is scheduled to stay in Jiangxi Province until May 7 to conduct an environmental pollution investigation, according to the media.

The Global Times cited officials from rare earth mining companies, stating that rare earth production had been carried out 24/7 due to surging demand, which caused serious environmental problems. It also reported that most rare earth waste treatment and separation plants have been closed.

Additionally, the production halt could reduce the supply of neodymium and praseodymium, key rare earths used in making permanent magnets, by about 1,200 tons per month. The environmental investigation related to rare earths and the resulting production stoppage are likely to lead to a rise in rare earth prices, and if production is halted for more than a month, it could burden the global supply, the report forecasted.

While China is strengthening rare earth management for environmental protection, some argue that China is using rare earths as a countermeasure against the Western bloc, including the United States. They claim that environmental pollution is an 'external justification' to weaponize rare earths.

Earlier, China’s Ministry of Industry and Information Technology drafted regulations on the production and export of 17 types of rare earths, and the Ministry of Natural Resources announced a crackdown on illegal mining of strategic minerals including rare earths. These measures came amid escalating US-China tensions.

China has previously weaponized rare earths. During the 2010 dispute with Japan over the Senkaku Islands (called Diaoyu Islands in China), China banned rare earth exports to Japan. At that time, the price of rare earth imports to Japan surged ninefold, severely impacting Japanese companies.

Meanwhile, from January to February this year, China’s rare earth exports reached 7,068 tons (based on customs clearance by China Customs), a sharp increase of 28.8% compared to the previous year.