Beijing: – Prices of rare earth minerals, vital for the technology and defence equipment, have peaked to the highest levels in China. The Chinese mouthpiece said that the Rare Earth Minerals’ price has almost doubled compared to last year due to the jump in demand. Meanwhile, reports suggest that the Pentagon, the US defence headquarters, plans to increase the stockpile of Rare Earth Minerals and Lithium.
The Chinese government mouthpiece’ Global Times’ in its report has forecasted the prices of the Rare Earth Minerals to continue to increase. The demand for Earth Minerals has grown tremendously, in the local market, in line with the economic policy announced by President Xi Jinping for the new year. But there is a supply shortage causing the prices to escalate as per the Global Times.
Analysts have expressed concerns that if the prices of rare earth minerals do not stabilize, then serious efforts would need to be put in to fill in the demand-supply gap, as it will have a detrimental effect on industrial growth.
Rare earth minerals are found and mined in a few countries only. China has the most significant share among these countries. China has 36.7% Rare Earth Minerals stock and the Chinese mouthpiece claimed that China has more than 60% share in the global production of rare earth minerals. As per the Chinese mouthpiece, China holds a stock of 44 million tonnes of rare earth minerals.
Analysts from the US and Europe have called to end the Chinese dominance in rare earth minerals. International think tanks have warned that if the Chinese monopoly is not dismantled, it will adversely affect the western countries. The European think tanks have highlighted that China is not only controlling the rare earth minerals stocks in their own country, but it is also influencing the Latin American countries having rare earth minerals deposits.
A few months ago, China invested USD 800 million in the Venezuelan for mining the huge deposits of Gold, Diamonds, Uranium, Iron, Coal and Coltan ores. Coltan is used to manufacture mobiles, laptops, and internet networking devices. For a few months, China had initiated actions to gain control over Afghanistan’s rare earth minerals deposits. It took advantage of the new Taliban regime in that country. It is claimed that with this agreement, China will tighten its grip over the rare earth minerals supplies in the world.
Nearly a month ago, US Senator Mark Kelly said that Chinese domination in the rare earth minerals market poses a threat to US security. Kelly warned that the use of rare earth minerals sourced from China in the US defence industry is a threat to US security. If the United States does not reduce its dependence on the rare earth minerals imports from China, then China will use this as a trade weapon against the United States. It is claimed that the Pentagon is working to ensure that China does not get such an opportunity. Reports had been received that the Pentagon is planning to stock Lithium, Cobalt and other rare earth minerals to reduce dependence on China.
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