How China created the Africa’s rare earth element opportunity

financialexpress.com:

By Gaurav Sen

Previously obscure group of metals, Rare Earth material has now gained global significance due to its use in industrial applications that support a future with lower carbon emissions. Rare earth elements—a group of 17 metals—are critical for both human and national security. It is anticipated that the high technology sector will continue to expand quickly, driving up demand for rare earth elements (REE), particularly for products that consume less carbon or emit less of it into the atmosphere. In many electrical, optical, magnetic, and catalytic applications, REE compounds are essential and irreplaceable due to their high melting and boiling temperatures. REE enabled the production of the most effective and potent drive motors for wind turbines and electric vehicles (EV). REE can be employed in high-tech products like tablets, smartphones, and headphones. In 2021, global demand for rare earths reached 125,000 metric tons. By 2030, it is forecast to reach 315,000 tons.

China has dominated the REE business for the past 25 years on both the supply and demand sides. It is alarming that the concentration of production of these rare earth minerals has not changed. China has a monopoly on the market, accounting for 85% of processing capacity and 60% of global production. The United States, Australia, Canada, and other nations are attempting to lessen their dependence on China as a source of rare earths manufacturing and processing in view of the rising geopolitical concerns surrounding China and Taiwan.  Due to this domination, China has tightened its hold on the market, making it extremely difficult for other nations to compete without being impacted by its policies or influence. The domination of China in