In mid-2023, Beijing announced stricter restrictions on the export of rare earths, crucial elements for the manufacture of electronic devices, military equipment, and renewable energy technologies. The measure is part of China’s strategy to consolidate its leadership in the global supply chain and secure control of critical components that are irreplaceable in many technological applications.
This restrictive policy has triggered a reaction in the international market, motivating countries like Australia, Canada, and Brazil to accelerate their own exploration and extraction projects. The need to diversify sources of these essential materials is driving investment in research and development of recycling and substitution technologies, which could transform the global landscape of the sector.
Moreover, the measure encourages the search for alternatives that reduce dependence on a single supplier. This opens a range of opportunities for investors willing to support technological innovation projects in the rare earths sector, both in extraction and in processing and recycling. New investments could not only improve the security of the global supply but also boost the competitiveness of emerging countries in this sector.
Investment in technological innovation to find replacements or maximize recycling of these elements has become a high-potential emerging sector.
Source:
- Bloomberg (July 31, 2023): “China’s Rare Earth Exports Slide as Beijing Tightens Grip on Industry”
