China is halting the export of certain critical raw materials that are essential for future technologies and the defense industry. It’s a move that will hit the US and the EU hard. Could Canada fill the gap?
The New York Times reported recently that the Chinese government was to halt exports of six rare earth elements that are refined entirely in China. It will also cease to export certain specialized powerful rare earth magnets currently manufactured almost exclusively in China, which is responsible for 90% of global production.
The raw materials and specialized magnets are key for high-tech sectors such as the manufacture of cars, robots, and military equipment like drones and missiles.
China is developing a regulatory system that will require companies to apply for licenses to obtain certain raw materials, a drastic move will have a significant effect not only on the United States but also on Europe. For years now, countries have sought to reduce their dependence on China for critical raw materials, triggering a global race to secure reliable alternative supplies.
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