China’s rare earth exports surge past pre-coronavirus levels, despite Western push to diversify supply

China’s exports of rare earth products in the first half of the year have surged past pre-pandemic levels in 2019, as the world’s biggest producer of the metallic elements recovers momentum despite attempts by the United States to bolster its domestic supply chain and some Western carmakers to find alternative suppliers.

The country’s rare earth exports by volume in the first six months of the year were about 51,000 tonnes, 25.3 per cent higher than the same period last year, and 16.5 per cent above the first half of 2019, before the coronavirus pandemic threw global trade into disarray, a detailed breakdown of data from China’s customs agency showed at the weekend.

The strong export figures come despite rising tensions between China and the West, and new draft legislation that proposes to tighten control over production and refining of rare earths, which Beijing views as a strategic resource.

China controls about 90 per cent of the world’s supply of rare earths, a group of 17 chemically similar elements that are abundant in nature, but difficult and dirty to extract.

The elements are critical to many hi-tech sectors, including telecommunications, electronics, aerospace, defence and car making.

Alongside materials such as cobalt, lithium and nickel, rare earths are a vital component in batteries that power the expanding fleet of electric cars around the world.