China resorted to the rare mineral weapon to confront the United States

In a deliberate strategic escalation, China recently activated one of its most prominent geo -tools in the face of escalating customs duties imposed by US President Donald Trump on Chinese exports, as Beijing decided to stop exports of a wide range of rare ground minerals that enter the process of basic magnets, which many vital American industries need.

The Chinese Ministry of Commerce has also suspended the country’s exports of “rare ground mineral magnets”, that is, magnets that are manufactured through rare ground minerals.

The Chinese decision, which entered into force on April 4, 2025 without a clear organizational framework so far, includes samarium, gadulinium, turbium, dessprosium, luteteium, scandium, and extrium, all of which are minerals used in the manufacture of magnets found in electric motors for cars, drones, robots, missiles, and spacecraft.

The rare ground metals are also used in the manufacture of magnets found in car engines operating in gasoline, jet engines, lasers, front car lamps, and also in the manufacture of computer chips that operate artificial intelligence and smartphones.

Given the great dependence of American industries on these minerals, the implications of the Chinese decision are expected to appear quickly in Washington.

According to a report prepared by the New York Times, and was seen by the Sky News Arabia website, the Chinese authorities have informed the mineral and magnets exporters in the country, that they are working to formulate a new system to export this type of commodity, as the new system is expected to prevent the arrival of rare ground minerals and magnets to certain companies, including American military contractors.

What raises the concern of executives in the mineral and magnets industry, is the possibility of China’s delay in issuing the new system, especially since it has not started any action on this issue until the moment. While Bloomberg’s report revealed that the new Chinese procedures related to the export of rare ground minerals and magnets may take about 45 working days.

Who are the countries covered by the decision?

According to the Chinese Ministry of Commerce’s decision, Chinese customs officials prohibit the export of rare heavy ground minerals and magnets to all countries, and not only to the United States.

Who controls rare minerals and magnets?

According to the New York Times, until 2023, China was producing about 99 percent of the world’s supply of rare heavy ground minerals, with little production of a refinery in Vietnam, but this refinery was closed during 2024 due to a tax dispute, which left China in a monopoly of the market.

China is also responsible for about 90 percent of the world’s production of magnets that are manufactured through rare ground minerals, which are estimated at about 200,000 tons annually. While Japan produces most of the remaining amount, Germany also produces a very small amount, but the latter depends on China to obtain raw materials to manufacture this type of magnet.

The US dollar loses its position as a safe haven

In the United States of America, there is a single rare ground mineral mine, which is the “Mountain Pass” mine in the California desert near the Nevada border, where the company “MB Matters”, which runs its commercial production of magnets, hopes at the end of this year for General Motors and other companies.

Effective effects on America

Michael Silver, Chairman and CEO of “American Illings”, a company -based chemical -based chemical company, revealed that his company increased its stock last winter in anticipation of a commercial war between the United States and China, and therefore it will be able to fulfill its current contracts, pending the issuance of the new Chinese system to export rare ground minerals within 45 days, according to what has been done Inform it.

While Daniel Picard, Chairman of the Consulting Committee for Basic Minerals at the US Trade Representative Office and the Ministry of Trade, has expressed concern about the availability of rare ground minerals, pointing out that Chinese controls may have severe effects on the United States.

Picard called for a quick solution to the rare mineral problem, stressing that the continued interruption of exports may harm China’s reputation as a reliable metal resource.

For his part, James Littski, one of the American mining sector pioneers and CEO of MP Matteries, said that rare mineral supplies for military contractors are greatly concerned, and based on everything we see, it can be considered that the future supply chain of these minerals has stopped.

The New York Times report, which was seen by the Sky News Arabia website, indicates that many American companies do not maintain large stockpiles of rare minerals, because they do not want to deposit their money in stocks of expensive materials, as one of the minerals subject to new controls, which is dysbrosium, is sold at a price of $ 204 per kilogram in Shanghai, And much more outside China.

Consequently, the rare rare ground magnets from factories in Detroit and other places may prevent them from collecting cars and other products equipped with electrical engines that require these magnets.

What are rare mineral magnets and how are they used?

Hassan El -Desouki, who specializes in electrical engineering, says in an interview with the “Sky News Arabia Economy” website, that magnets made of rare ground minerals are not just simple ingredients, but are basic elements in developing many modern devices, and they are known as high -performance magnets, the most famous of which are: the first is the neodimium magnet, which is the most powerful type of commercial magnets available Currently, it is used in electric motors in cars, in loudspeakers, robots, and drones.

As for the second type, it is the Samarium magnet Cobalt, which is able to withstand very high temperatures and corrosion, and is used in jet engines, rocket guidance systems and some space and defense systems.

Desouki explains that the magnets made of rare Earth’s minerals are integrated into the devices accurately and studied according to the function of each device.

For example, in electric cars, the magnet is placed in the heart of the electric motor, as it helps to generate the magnetic field, which moves the roundabout and turns electrical energy into a mechanical movement. In drones and robots, these magnets are placed in small engines that need a quick response and high strength at the same time, making them ideal for accurate flying or smart robot movements. Pointing out that the majority of manufacturers of jet engines and missile guidance systems use magnets made of rare metals to fix them in places exposed to very high temperatures, conditions that are not borne by traditional iron magnets.

Heavy geo -economic weapon

For its part, the economic analyst, Ranie my price, says, in an interview with the “Sky News Arabia Economy” website, that what we are witnessing today is China’s use of what can be called “heavy geo -economic weapon”, by disrupting rare ground mineral exports and magnets that are considered the backbone of supply chains in American technological and military industries. This decision does not only reflect a direct response to customs duties by 145 percent imposed by the Trump administration on Chinese goods, but also reveals a shift in the nature of the confrontation between the two largest economies in the world, from a commercial war to a struggle over strategic resources.

Does America exceed the blow?

According to my price, China today is the dominant power in the field of rare ground mineral exports, not only because it has these resources, but also because it has developed an integrated industrial system, which includes the process of extracting and refining minerals, leading to the final manufacturing of magnets. As the absence of this series in the United States is what makes Beijing’s decision on rare ground minerals so painful for America.

She pointed out that the United States can overcome this strike, but at a high price and a long time, as the development of local alternatives to extract and refine minerals, as it takes place in the “Mountain Pass” mine, needs huge investments and a motivational organizational environment.

My price pointed out that the United States can expand its partnerships with allied countries with reserves of these minerals, such as Australia, Canada and Japan, or invest in recycling and alternative materials, which has already started in some American laboratories.

She revealed that billionaire Elon Musk, who is currently a member of the Trump administration, indicated days ago that the Chinese progress in the field of rare ground minerals is due to Beijing’s ability to extract and refine minerals with superior capabilities, only because of the presence of these minerals on its territory, which is the weakness of America. As minerals can be found in several places in the world, but the process of refining them is the most difficult.

My price explained that the world has become dependent on China, not only as a major source of ground minerals and raw materials, but also as an indispensable factory for goods that can be produced through these materials. This is due to the long -term Chinese vision that started since the 1990s, by developing and financing infrastructure with the aim of promoting internal manufacturing.

She stressed that the Chinese decision to block rare ground minerals highlights how the trade conflict is no longer only revolves around the surplus of trade balance or customs duties, but rather is related to raw materials and minerals, which is a very important reminder for Washington that the economic war may turn into a struggle on the basic resources on which future industries are based.