MINEX Forum

Tag: China export restrictions

  • Finland’s Terrafame Eyes Scandium Production From Uranium Plant, Potentially Becoming Europe’s Sole Supplier

    Finland’s Terrafame Eyes Scandium Production From Uranium Plant, Potentially Becoming Europe’s Sole Supplier

    Finnish metals company Terrafame is studying the feasibility of producing scandium from its existing uranium recovery operation, a move that could make it Europe’s only producer of the rare earth metal used in high-performance aluminium alloys, defence applications and other advanced industries.

    The Trafigura-backed company has launched a pre-feasibility study to assess whether scandium can be recovered as a side stream at its uranium recovery plant in Finland. A final investment decision is targeted for early 2027, with production estimated to begin approximately two years after that if the project proceeds. The study is expected to be completed by year-end.

    Approximately 85% of global scandium supply currently comes from China, which restricted exports of the metal last year as part of its broader retaliation against US tariffs — making European domestic production a strategic priority. Terrafame said the primary end-use target for its scandium would be high-performance aluminium alloys, where scandium additions enable lighter, stronger and more durable components with applications across aerospace, defence and transportation.

    The company said it would also approach potential customers and explore opportunities linked to national strategic stockpiling initiatives — a reference to the growing number of European government programmes seeking to build reserves of critical materials outside Chinese supply chains.

    Chief executive Antti Koulumies framed the initiative as a resource efficiency measure as much as a strategic one. “By exploring the recovery of scandium from Terrafame’s existing ore feed, we are utilising the full value of our resources, while also addressing the need for domestic European supply of this critical metal,” he said.

  • US and EU Procurement Rules Are Shifting Rare Earth Buying Decisions Away From China, Lynas CEO Says

    US and EU Procurement Rules Are Shifting Rare Earth Buying Decisions Away From China, Lynas CEO Says

    New government regulations in the United States and European Union are beginning to change purchasing behaviour in the rare earth supply chain, pushing buyers toward non-Chinese suppliers as compliance requirements make sourcing from China increasingly difficult for companies selling into regulated markets, the chief executive of Lynas Rare Earths has said.

    Speaking at an event in Canberra, Lynas CEO Amanda Lacaze said the US is introducing procurement regulations next year that include restrictions on the acquisition of certain magnets, tantalum and tungsten, while the EU is bringing in sourcing restrictions under its critical raw materials framework. “In both cases, we are observing changed purchasing decisions so that consumers can comply with the regulations,” she said.

    The shift comes after years in which convincing international customers to pay more for non-Chinese rare earths proved difficult, despite China’s dominance as the world’s largest and lowest-cost producer of the metals and magnets used across automotive, defence and technology industries. Beijing’s decision to restrict exports of seven rare earth elements last year in response to US tariffs exposed global manufacturers to supply risk and accelerated government-level action to develop alternative supply chains.

    Washington has pledged to support higher prices for domestic and allied rare earth producers to stimulate non-Chinese supply, but regulatory mandates are proving a more immediate catalyst for changed procurement decisions than price signals alone. Lacaze called for governments beyond the US and Japan to go further, advocating for floor prices to be set as a tool to make non-Chinese rare earth production commercially viable at scale. Australia is revising its strategic reserve policies and its resources minister confirmed in March that the reserve will include a floor price element.

    Perth-headquartered Lynas, which operates a processing facility in Malaysia, is the world’s largest rare earth producer outside China and stands to benefit directly from the regulatory-driven shift in buying patterns.

  • Japan and France Sign Critical Minerals Roadmap as Both Nations Race to Break Free From Chinese Rare Earths Dominance

    Japan and France Sign Critical Minerals Roadmap as Both Nations Race to Break Free From Chinese Rare Earths Dominance

    Japan and France have agreed to deepen cooperation on rare earths supply chains, signing a roadmap during French President Emmanuel Macron’s three-day visit to Tokyo for talks with Prime Minister Sanae Takaichi — the latest in a series of moves by both countries to reduce their exposure to China’s commanding grip on global rare earths production.

    At the heart of the agreement is joint support for Caremag, a rare earths refining project in southern France due to begin operations in late 2026. The plant is backed by Japan’s state-owned Japan Organization for Metals and Energy Security, gas company Iwatani and the French government. Japan is targeting approximately 20% of its future demand for dysprosium and terbium — heavy rare earth oxides used in EV motors, offshore wind turbines and electronic components — from the facility, providing a concrete near-term alternative to Chinese supply.

    The two sides also committed to securing raw material supply chains feeding into Caremag, and a joint statement from Takaichi and Macron is expected to call for broader diversification of rare earth and critical mineral supply away from China. French Finance Minister Roland Lescure was unambiguous on the rationale: “We cannot rely solely on specific countries, especially China.”

    The deal comes at a particularly tense moment in Japan-China relations. In February, Beijing prohibited exports of dual-use items — covering seven rare earths including dysprosium and yttrium — to 20 Japanese entities it said supply Japan’s military, following comments by Takaichi about Taiwan that angered Beijing. The restrictions have reinforced longstanding Japanese concerns about supply chain vulnerability, though analysts note that China’s leverage may be limited. “China is pursuing a strategy of using rare earths as a diplomatic card, and if US-China and Japan-China relations improve, exports could recover quickly,” said Kotaro Shimizu, principal analyst at Mitsubishi UFJ Research and Consulting.

    Japan has been diversifying its rare earths supply since a 2010 diplomatic incident in which China restricted exports to Tokyo, reducing its dependence on Chinese supply from 90% to around 60%. That effort is now accelerating across multiple fronts. Sojitz has a long-standing tie-up with Australia’s Lynas Rare Earths, one of the few Western-scale rare earths producers. Mitsubishi Materials this week agreed to acquire a stake in US-based ReElement, a rare earth recycling company, as Tokyo and Washington formalise an action plan for China alternatives. Japan and the US are also weighing joint development of rare-earth-rich seabed mud deposits near the remote Minamitori Island, and Japan is in talks with India to explore rare earths in the desert state of Rajasthan.

    The two countries also agreed to pursue cooperation in space, with companies from both nations expected to sign memorandums of understanding on twelve joint projects including space debris removal and rocket launches.

  • Race to Lock Up Rare Earths Supply Leaves Germany and South Korea Exposed, Warns Arafura CEO

    Race to Lock Up Rare Earths Supply Leaves Germany and South Korea Exposed, Warns Arafura CEO

    Germany and South Korea face a critical vulnerability in their rare earths supply chains as the United States and Japan move rapidly to secure long-term agreements with the world’s limited pool of non-Chinese producers, the chief executive of Australian rare earths developer Arafura has warned.

    The alert comes as China’s export restrictions on key rare earth minerals — imposed last year — continue to reverberate through the automotive and defence industries globally, accelerating a scramble among Western nations to lock up alternative supply. With only two Western producers currently operating at scale — Australia’s Lynas Rare Earths and US-based MP Materials at its Mountain Pass deposit — available supply outside China is extremely constrained.

    The US has already secured Mountain Pass output through a government deal with MP Materials, covering a significant portion of American demand. Lynas this month concluded a long-term supply agreement with Japan Australia Rare Earths running through 2038, alongside a shorter-term deal with the Pentagon. With Lynas’ supply now effectively committed, Arafura CEO Darryl Cuzzubbo said his company had observed a marked increase in urgency from prospective buyers. “The EU and in particular Germany, and Korea are quite exposed — where are they going to get their supply from?” he said.

    Arafura is positioning its Nolans project in Australia’s Northern Territory as one of the few remaining sources of meaningful non-Chinese supply. The project is planned to produce 4,440 metric tons per year of neodymium-praseodymium (NdPr) oxide — a key material used in rare earth permanent magnets for electric vehicles and wind turbines — from the second half of 2029, representing roughly 4% of projected global supply. The company already holds supply agreements with Hyundai Motor, Kia, Siemens Gamesa Renewable Energy and commodity trader Traxys.

    Arafura is now seeking to place a further 1,200 tons of NdPr oxide to bring secured supply to 80% of planned output — a threshold required by project lenders before a final investment decision can be made and construction begins. Cuzzubbo said negotiations were underway with multiple parties, with pricing the determining factor. “We haven’t put all of our eggs into one basket — the one that gets there first on the right sort of pricing regime is the one we’re going to go with,” he said. Arafura is seeking terms in line with those achieved by Lynas, which locked in a price of $110 per kilogram of NdPr oxide in both its recent deals. China-based spot prices currently sit at around $103 per kilogram.

    Beyond direct supply agreements, Arafura expects to participate in Australia’s A$1.2 billion ($836 million) strategic critical minerals reserve, which is due to begin operating in the second half of this year. Cuzzubbo called for the reserve’s floor price mechanism to be anchored to an independent international benchmark — such as that published by Benchmark Minerals Intelligence — rather than to Chinese market prices, which he argued have distorted the global market. “The market is broken — you need to create a functioning market,” he said. “A floor price will take uncertainty out of pricing, which has been very uncertain given China’s control, and that will help bring in investors.”

    He also framed the reserve as a strategic tool for Australian diplomacy. “It is a bit of a bargaining chip that the Australian government can use with its allies,” he said, adding that it could help accelerate project development across the sector.

  • China Eases Rare Earth Export Curbs Amid Auto Industry Pressure, Offers “Green Channel” to EU Firms

    China Eases Rare Earth Export Curbs Amid Auto Industry Pressure, Offers “Green Channel” to EU Firms

    China has signaled a partial retreat from its rare earth export restrictions by offering a fast-track licensing process — dubbed a “green channel” — for eligible European Union companies, in a move seen as a lifeline for auto manufacturers on both sides of the Atlantic.

    The announcement came following high-level trade talks in Paris between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic. Wang reportedly encouraged the EU to take “reciprocal steps” in fostering compliant high-tech trade with Beijing.

    The rare earths licensing bottleneck, triggered by China’s export curbs in April, has placed immense strain on global auto supply chains, with materials critical to electric vehicle motors, combustion engines, and electronics held up in customs.

    Now, according to sources cited by Reuters, General Motors, Ford, and Stellantis suppliers have received license approvals. Stellantis confirmed that it has avoided major production disruptions and is “working with suppliers and institutions to ensure an efficient licensing process.”

    Europe’s Auto Sector Breathes — Cautiously

    While the move was welcomed by European automakers, analysts remain skeptical about the practical implementation of China’s promised fast-tracking. Maximilian Butek of the German Chamber of Commerce in China called the process a “bureaucratic monster,” expressing doubts that approvals will genuinely speed up.

    “This is retaliation against U.S. tariffs,” Butek added, noting that European companies now feel caught in the crossfire. “It’s not enough to announce it — China needs to prove it’s serious.”

    The European Automobile Manufacturers’ Association (ACEA) had earlier warned that production stoppages were imminent due to depleted rare earth magnet inventories. Companies like Volkswagen, Ferrari, Renault, and Volvo were reportedly days or weeks away from forced shutdowns.

    Further compounding the pressure, Japanese automaker Suzuki has already suspended production of its Swift model due to raw material shortages, Reuters reported.

    China’s Rare Earth Dominance Looms Large

    China dominates the global supply chain for rare earth elements, controlling roughly 60% of production and even more in processing capacity. The April restrictions were seen as a direct response to U.S. President Donald Trump’s tariff hike on Chinese goods, intensifying an already escalating trade conflict.

    The comparison to the 2020 semiconductor crisis is increasingly apt. As Jonathan O’Riordan from ACEA warned, “We’re entering a very critical moment — those stocks are being exhausted. We are potentially going to see production stoppages.”

    The crisis underscores the West’s growing need to diversify supply chains and reduce reliance on a single geopolitical actor for critical materials — especially as the global shift to green energy accelerates.