Rare Earths Export Ban: China's Impact on Global Energy Transition

The recent decision by China to impose export bans on seven rare earth elements highlights the critical reliance of the global energy transition on Chinese resources. These elements, including dysprosium – vital for making powerful magnets used in wind turbines and electric vehicles – have suddenly become harder to obtain. This decision comes in retaliation against the steep tariffs enacted by former President Trump, further complicating the supply chains for renewable energy technologies.

Historically significant, the discovery of dysprosium dates back to 1886 when French chemist Paul-Émile Lecoq de Boisbaudran first extracted it. Today, it plays an indispensable role in the transition to cleaner energy, alongside other rare earth minerals. The recent ban exposes a broader issue: China supplies more than half of the critical minerals deemed essential to U.S. national security and economic stability, including lithium, cobalt, and nickel.

These minerals are integral to rechargeable batteries in electric vehicles and for energy storage systems, particularly during unfavorable weather conditions for renewable sources. China's dominance in refining and mining these resources, including controlling significant operations in mineral-rich regions like Indonesia and the Democratic Republic of Congo, places the global clean energy agenda at risk. As international markets brace for the impacts of the ban, the urgency for alternative sources and strategies becomes ever more pressing.