News l Rare earth of China

Rare earths are a group of 17 minerals used in manufacturing flat-screen TVs, mobile phones, batteries for electric cars, wind turbines and weaponry.

By closing or nationalizing dozens of the producers of rare earth metals which also are used in energy-efficient bulbs and many other green-energy products — China is temporarily shutting down most of the industry and crimping the global supply of the vital resources.

China has about 30 percent of global rare earth deposits but accounts for 97 percent of production. In the name of fighting pollution, Beijing has alarmed global manufacturers by reducing exports, prompting pressure from Europe and the United States to treat foreign and domestic buyers equally.

In China, prices of some rare earths have fallen sharply since June. Beijing is merging its rare earths producers to tighten control over production, sales and pricing. It announced in June that Baotou Steel would become the only miner, refiner and seller of rare earths in the northern region of Inner Mongolia, a production center. It said 35 other companies there would be merged or closed.


China is taking the steps to improve pollution controls in a notoriously toxic mining and processing industry. But the moves also have potential international trade implications and have started yet another round of price increases for rare earths, which are vital for green-energy products including giant wind turbines, hybrid gasoline-electric cars and compact fluorescent bulbs.

The United States, Canada and Australia also have rare earths but stopped mining them in the 1990s as lower-cost Chinese ores flooded the market. Most of the country’s rare earth factories have also been closed since early August, including those under government control, to allow for installation of pollution control equipment that must be in place by Oct. 1, executives and regulators said.