China has stopped rare land exports, can Australia climb?

Australian Prime Minister Anthony Albaniz pledged to invest $ 1.2 billion (580 million pounds) in a strategic reserve for critical minerals if he won the elections next month, with the escalation of commercial tensions.

This announcement came after China imposed restrictions on the export of seven rare ground elements necessary to produce advanced technologies – including electric cars, combat aircraft and robots.

China’s controls apply to all countries but have been widely seen Revenge of US President Donald Trump’s tariff.

Albaniz said that Australia will give priority to minerals, which are the key to its security, and those of its partners, including the rare land. But can you challenge his plan to dominate China?

The rare land is a group of 17 elements – called “rare” because it is difficult to extract and refine it.

Rare land, such as Samarium and Terbium, is necessary to produce the technologies that have been identified to form the world in the coming decades – including electric cars and very advanced weapons systems.

The proposed reserves of Albanese include a rare ground in addition to other critical metals that Australia is a large product – such as lithium and cobalt.

Both China and Australia have rare ground reserves. But 90 % of rare land refining – which makes it useful in technology – occurs in China, allowing the country great control over the show.

Western governments were terrified.

Beijing said that its restrictions on the rare land were in response to Trump’s sweeping definitions of Chinese imports of the United States, currently 145 %.

But analysts say that Washington’s inability to secure rare land supply has become one of the main concerns of the Trump administration, especially since diplomatic tensions with Beijing have been deepened.

About 75 % of rare land imports from China came between 2019 and 2022, according to the American Geological Survey.

Philip Kirchlichner, director of Iron Ore Research in Perth, West Australia, BBC, told the United States and the European Union “Get the Ball” to recognize the rare importance of the land over recent decades, as China has quickly developed a monopoly on the rule.

“China has its feet on the doll’s vein … from US and European defense systems,” he added.

Elon Musk, CEO of Tesla, said that China, which has stopped the rare land exports used in advanced magnets, affected the company’s ability to develop human robots, in an early symbol of Beijing’s pain had the ability to attach American companies.

Albaniz’s suggestion says that minerals in the reserve will be available to both the “local industry and international partners”, in a possible reference to allies such as the United States and the European Union.

But Kirchlechner, while welcoming this step as “long late”, added that the proposal “will not solve the problem.”

The basic issue is that even if Australia stores the most important minerals, the rare land refining process will be largely controlled by China.

A good example of lithium – not a rare ground, but it is a decisive metal in electric car batteries and solar panels. Australia is 33 % of lithium in the world, but it only improves and exports a small part. On the other hand, China is only 23 % of the world of lithium in the world, but it improves 57 % of them, according to the International Energy Agency.

Australia is invested in improving the rare land as part of its future in the Australia plan, which aims to take advantage of the country’s critical mineral reserves to lead green transition.

Arafura Rare Earths, based in Barth, Western Australia, received $ 840 million last year in financing to create the first mine and refinery in the country for rare land. In November, Australia also opened the first rare land processing factory, also in western Australia, run by Lynas Rare Earths.

But the country is expected to rely on China to refine at least 2026, according to the Center for Strategic and International Studies, based in Washington.

China tries to seize the fluctuations brought by Trump.

In a series of opening articles in Australian newspapers, the Chinese Ambassador to Canberra criticized Washington’s approach to global trade, and called on Australia to “join hands” with Beijing – something that Albanez rejected quickly.

Australia described the resource industry in its talks with Trump. Some critical metals were exempted from a 10 % tariff imposed on imports of most Australian products.

But analysts say that Albaniz’s proposal aims mainly to protect Australia and its strategic opponents such as China.

Alicia Garcia Herro, the chief economist in the Asia Pacific region in Natxis, BBC, has been that Albaniz’s plan was “more advanced” than previous proposals, because it included the ability to sell Australia’s resources in moments of economic tension.

She added that China has imposed export controls, which could begin Australia to sell more of its metal reserves to help reduce prices in global markets, and to reduce the control that China had to set prices.

But she said that Australia still could not replace China completely.

“If the target (Australia) is the service of the West, it becomes more effective in the West – especially the United States – there are weak spots that China can enter – and most importantly it is to improve it.”