China Zooming Towards the Distinction of Becoming the Largest Consumer of Rare Earths
From being the largest producer and exporter of rare earths, China is zooming towards the distinction of becoming the largest consumer of rare earths. With the growth of domestic high-tech industries, increased spending on defense technologies and demand for producing green energy, China is fast becoming a voracious consumer of rare earth materials.
According to the U.S. Geological Survey, China’s consumption of rare earth elements quadrupled from 19,000 metric tons in 2000 to 73,000 metric tons in 2009. Almost 30% of China’s rare earths consumption has been primarily used in producing magnets.
In recent times, Chinese rare earth exports have fallen due to increased domestic demand and the government’s move to cap rare earth exports with quotas, citing environment protection and conservation of natural resources. According to a recent news report, China has cut rare earth mining permits by half in order to consolidate the industry and create bigger rare earth producing companies.
Source: Proactive Investors Australia
By Anthony David