A presentation by Ginger International Trade & Investment Pte., Ltd.
- The early market chain was conceived when China was a much smaller factor in world trade, far from dominating anything at all.
- It served to discourage squandering of resources and exporting them cheaply.
Facts everyone is aware of:
• China dominates world finished rare earth oxide (REO) output
• China is also the largest market for finished rare earth compounds and metals
• China exports ~30% of it’s output as REO
• As a result of climate change based regulation, the demand for sustainable energy and transport is strongly growing, which drives demand for rare earth and rare earth magnets
• Along with this comes increased rare earth raw material import demand in China
Facts not everyone is aware of:
• China’s market share in NdFeB magnets is close to 90%
• Ex-China hopeful rare earth producers main markets for magnet raw materials would be
China and Japan, the distant second in NdFeB production
• China is the default destination for junior RE miners output of rare earth raw materials and
intermediate products
• Potential for new NdFeB production ex-China does not look promising
• ex-China rare earth oxide production and NdFeB production would face hidden challenges
• This is what we hope to explain Rare Earth
How did we get here?
"From the 1980s onwards, most of the rest of the world opted out of the dirty work of rare earth mining and value-added processing, right as China was opting in."
"China's dominance in the rare earth sector is not a matter of mystery or conspiracy....this situation is a result of confluence of policy decisions, some of them intentional, some of them unintentional, in China and in the West."
Julie Klinger
Assistant Professor for Geography & Spatial Sciences
University of Delaware
"China did not take rare earth from the West, the West handed it to China."
Dr Badrinath Veluri
President
Rare Earth Industry Association
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