China retains significant control over the global rare earth metal market, despite efforts by European and US countries to reduce dependence on Chinese supplies.
Chinese Export Licenses for Rare Earth Metals
This month, three companies listed in Shenzhen announced they received approval from Beijing to export magnets made from rare earth elements. However, Baotou INST Magnetic New Materials warned in May that its permit covers only a single shipment.
Volatility in the Rare Earth Market
A commerce ministry spokesman stated that 'a certain number' of licenses for rare earths have been approved. Still, business leaders noted that market conditions remain shaky. Philippe Kehren, CEO of Solvay's chemical unit, stated that 'volatility remains high.'
Automakers Seek Alternatives to Rare Earth Elements
Automakers such as General Motors and BMW have started producing electric vehicles with little or no use of rare earth elements. However, many companies face challenges in reducing costs to compete more broadly.
China continues to be a dominant force in the rare earth metal market, while automakers are forced to explore alternatives and strategies to minimize risks associated with supply.
