Two women in traditional Yunnan costumes sit in a rice field with baskets on their backs and use a smartphone, symbolizing the meeting of tradition and modern technology.

China's discovery of rare earths in Yunnan could change the global market

2025-02-10

China has recently made a significant discovery of rare earth metals in Yunnan Province, reports NewsweekThe discovery, estimated to contain 470 tons of these critical metals, could have far-reaching consequences for the global market and the Western world's strategies for raw material supply.

What does the find mean?

Rare earth elements are essential for high-tech products such as electric cars, wind turbines and electronics. China already dominates global production, accounting for around 90 percent of the world's supply. This new discovery could further strengthen the country's grip on the market, which could have both geopolitical and economic implications.

Other countries' deposits

In addition to China's discovery, other countries have also reported significant rare earth discoveries. In January 2023, LKAB announced that it had found Europe's largest known deposit in Kiruna, Sweden, with over one million tonnes of oxides. However, it could be 10–15 years before any mining takes place due to extensive permitting processes and environmental assessments.

International reactions

How this discovery will affect the global supply chain is still unclear, but it underscores the importance of diversifying supply sources and reducing dependence on China. Swedish news site Dagens PS reports that the discovery in China could change the entire playing field and increase pressure on the West to secure alternative raw material reserves.

As China continues to strengthen its position in the raw materials market, countries like Sweden and the United States face the challenge of streamlining the processes for mining and refining their own resources. The upcoming developments could have major implications for both the technology sector and the global economy.

Rare earth metals

  • What are they? Rare earth elements are a group of 17 elements, including neodymium, praseodymium and yttrium, that are used in advanced technology.
  • Areas of use: They are used in electric cars, magnets, wind turbines, batteries, catalysts, mobile phones and defense technology.
  • Global reserves: China has the largest known reserves, but significant finds are also found in the USA, Australia and Sweden.
  • Challenges: Extraction and processing are environmentally challenging and require large investments.

Text: The editorial staff

Image license: mercierzeng, Pixabay, original image