Organisation for Research on China and Asia (ORCA)’s Post

#REIA Weekly Newsletter https://lnkd.in/eRzQTDgU During the first six months of 2023, #China exported 27 066 metric tonnes of rare-earth permanent magnets, almost half of its domestic production. Compared to rare-earth #oxides or #metals, magnet production is a lucrative business for Chinese manufacturers, and the government incentivises their export in several ways. The mainstream #media often sensationalises anything related to China and the #rareearths, often warning the world that the next export ban could be rare earths and rare-earth permanent magnets. Analysts often point to an alleged temporary rare-earth export ban in 2010, said to have been directed at Japan. In a recently published comprehensive report, noted #trade economists Simon J. Evenett and Johannes Fritz revisited the China–Japan rare-earths dispute of 2010. Drawing upon an analysis in the recently published Global Trade Alert report on #criticalrawmaterials, they analyse the evidence about this salient episode. The findings highlight that in times of intensifying #geopolitical rivalry, there is value in checking whether salient narratives have any basis in fact. In this week’s lead article, Silvia Bobba et al investigate the recent progress of #circular strategies and estimate their effects in future scenarios for permanent magnets in e-motors, by applying a novel Circular Input Rate (CIR) indicator. The study finds that #traceability for e-motors and the quality of both remanufactured and recycled materials have been recognised as key factors to enhance #circulareconomy strategies, and to promote the creation of related business cases. Other stories include updates from REIA members Mkango Resources Ltd., Ionic Rare Earths Limited and Australian Strategic Materials (ASM) Materials, REE Market news, e-mobility and geo-political news. #sustainability #sustainabledevelopment #rareearthelements #circular #circularity #mining #export #climateaction #climatechange Badrinath Veluri William Dawes gian andrea blengini Lee Constable Neda Bahremandi Tolou Alexandra Cristina Donea

In securing critical minerals supply chains: “The better policy response is not onshoring or creating strategic alliances. Expanding and diversifying investment in resource-rich developing countries would increase and diversify supply, reducing reliance on a few countries and firms. China must be accommodated in the interim given its significant role in reducing the cost of decarbonisation in other countries.... Diversifying investments to resource-rich developing countries also has its challenges, as industrial policy intended to increase the value-add of mineral resources can distort investment decisions... Indonesia, for instance... Keeping trade open and predictable is as vital to resource-rich countries as it is to resource-poor economies,” wrote Mari Pangestu.

The Wall Street Journal piece on the U.S. race to catch up with China's resource acquisition is worthy of our time. It's an issue of profound importance in a world spending trillions to move towards energy extraction which relies upon batteries for delivery. As important as this issue is, it is part of a broader U.S. - China tussle over resources and the U.S. faces a steep uphill climb. Among the challenges are far more robust and transparent U.S. environmental and labor regulations. Where China winks and nods at international standards forbidding the use of materials secured through slavery, child labor, and recklessness in the lives and health of workers, the U.S. shares an active litigation and regulatory posture which promotes these values in tangible, actionable ways. In practice, this means that global corporations, desperate for materials barred by many government's policies and laws, are only too happy to have China to buy them from. China's ability to amalgamate materials, particularly rare and precious metals, stripping away their troublesome provenance, is prized by companies which could not produce devices for which the public is only willing to pay so much for Environmental, Social, and Governance (ESG). The public is content to pretend that the raw materials on which the global supply chain rests can be cheaply cleansed of the root bad behavior we decry. As long as this remains true, the U.S. and our allies will struggle to compete with China. The bottom line is that China's single-party State is perfectly OK with the conduct the U.S. actively legislates to eradicate and the buying public are hypocritial in our willing blindness to our reliance upon that same bad behavior. By extension, the U.S. government, quite conscious of this necessary hypocrisy, is legislating away competitive advantages, while continuing to promote global economic policies which strengthen China's material dominance. If this sounds crazy to us, we are not alone. It's the background that industry leaders perfectly understand and have no idea how to address. I don't either... Which is why I work with clients to manage, as best we can, their supply chain. We can't cleanse it but we CAN make sure we aren't dealing with known bad actors. Perhaps that has to be the standard. https://lnkd.in/eNhgE5_d

Very important points made by Joris Teer (刘亚伯）and Chris Miller on the stategic importance of de-risking critical raw materials from China.   My key take-away: whether it is the Net Zero Industry Act or the Critical Raw Materials Act, all the documents adopted in Brussels are not enough to ensure that more critical raw materials enter the market.   Additional political and financial incentives are needed. If the EU fails to formulate a business case for critical raw materials "made in Europe", Europe will be economically hitched.   Because we need significantly more critical raw materials in the lead markets of the future - whether for semiconductors, electric vehicles or solar systems.   However, Europe´s economic future should not be dependent on imports from China. Therefore, more domestic production and processing of critical raw materials in Europe. Now!

#REIA Weekly Newsletter https://lnkd.in/dUpYuPFA Heavy rare-earth elements (#REEs) such as #terbium and #dysprosium are essential for high-end #permanentmagnet applications, especially in the #automotive industry. Currently there are no #commercial-scale sources of these #elements in finished forms, from outside of #China. There are #economic, #technological and #environmental challenges to developing a #diversified #supplychain. Heavy REEs found in ion-adsorbed clays typically occur with grades significantly less than 1%, making them difficult to #process and to #recover #efficiently and #sustainably. The problem also arises when precursor #materials are sourced from #autocratic and #conflict-ridden countries such as #Myanmar. REIA members such as Ionic Rare Earths Limited, Aclara Resources, OD6 Metals, and Namibia Critical Metals Inc. are in different stages of their heavy #REE project development, and are working on approaches to deal with these #challenges, as they move towards #commercialization. Please join us in #Tokyo for the 2024 REIA #AnnualConference, where will discuss the supply-chain #bottlenecks around heavy REEs via a panel involving aforementioned member companies along with JLMAG International, a main #magnet #producer and #supplier to leading automotive companies. The session will be moderated by Thomas Kruemmer, the most vivid #commentator on the #REEs today, and who often asks hard questions. Please register soon, as spaces are limited and are filling rapidly.  Serving as a regional assessment of China's ongoing #mining and #application of REEs, in this week's lead article Dan Smyer Yü investigates China's historical and ongoing mining and #trading of #REE and offers an understanding of the environmental trends and consequences of REE mining and processing in China. The article offers a perspective on the environmental outcomes from the #state-determined, #growth-based, #globalized #nationaleconomy, and the state-initiated environmental regulations on domestic REEs mining in China. Don’t miss the small but interesting blog piece from The International Council on Clean Transportation. The article provides an insight on the #electrification and how Chinese #electriccar brands are penetrating into #Western #markets – a wake-up call for western big auto companies. Other stories include updates from REIA members Neo Performance Materials and Lindian Resources Limited, e-mobility and geopolitical news. #sustainability #rareearth #circulareconomy #recycling #climatechange #energytransition #netzero Badrinath Veluri Neda Bahremandi khan liu Lee Constable Vasileios Tsianos Alistair Stephens Brett Hazelden Ramon Barua

#REIA Weekly Newsletter https://lnkd.in/dUpYuPFA Heavy rare-earth elements (#REEs) such as #terbium and #dysprosium are essential for high-end #permanentmagnet applications, especially in the #automotive industry. Currently there are no #commercial-scale sources of these #elements in finished forms, from outside of #China. There are #economic, #technological and #environmental challenges to developing a #diversified #supplychain. Heavy REEs found in ion-adsorbed clays typically occur with grades significantly less than 1%, making them difficult to #process and to #recover #efficiently and #sustainably. The problem also arises when precursor #materials are sourced from #autocratic and #conflict-ridden countries such as #Myanmar. REIA members such as Ionic Rare Earths Limited, Aclara Resources, OD6 Metals, and Namibia Critical Metals Inc. are in different stages of their heavy #REE project development, and are working on approaches to deal with these #challenges, as they move towards #commercialization. Please join us in #Tokyo for the 2024 REIA #AnnualConference, where will discuss the supply-chain #bottlenecks around heavy REEs via a panel involving aforementioned member companies along with JL MAG International, a main #magnet #producer and #supplier to leading automotive companies. The session will be moderated by Thomas Kruemmer, the most vivid commentator on the REEs today, and who often asks hard questions. Please register soon, as spaces are limited and are filling rapidly.  Serving as a regional assessment of China's ongoing #mining and #application of REEs, in this week's lead article Dan Smyer Yü investigates China's historical and ongoing mining and #trading of REE and offers an understanding of the environmental trends and consequences of REE mining and processing in China. The article offers a perspective on the environmental outcomes from the #state-determined, #growth-based, #globalized #nationaleconomy, and the state-initiated environmental regulations on domestic REEs mining in China. Don’t miss the small but interesting blog piece from The International Council on Clean Transportation. The article provides an insight on the #electrification and how Chinese #electriccar brands are penetrating into Western markets – a wake-up call for western big auto companies. Other stories include updates from REIA members Neo Performance Materials and Lindian Resources Limited Resources, e-mobility and geopolitical news. #sustainability #rareearth #circulareconomy #recycling #climatechange #energytransition #netzero Badrinath Veluri Nabeel Mancheri Alexandra Cristina Tim Harrison Lee Constable Ramon Barua Barry Murphy khan liu Brett Hazelden Darrin Campbell Vasileios Tsianos Alistair Stephens

How Geopolitics Is Complicating the Move to Clean Energy The fate of Indonesia’s unrivaled stocks of nickel — a critical mineral used to make batteries for electric vehicles — is caught in the conflict between the United States and China. Summary: Indonesia, home to unrivaled stocks of nickel, a critical mineral essential for electric vehicle (EV) batteries, finds itself at the intersection of a geopolitical conflict between the United States and China. Luhut Binsar Pandjaitan, a prominent figure in Indonesia's government, harbors ambitions to transform the nation into a hub for EV production. His vision aligns with the global push towards clean energy and sustainability. However, this aspiration faces significant challenges due to the complex international landscape. Historically, Indonesia has managed to avoid entanglements in ideological rivalries, maintaining a neutral stance in global affairs. But the growing demand for nickel and the strategic importance of EVs in the clean energy transition have thrust Indonesia into the spotlight. The U.S. and China, both major players in the EV market, have vested interests in securing access to Indonesia's nickel reserves. This has led to a delicate balancing act for Indonesia, as it must navigate the conflicting interests of these superpowers while pursuing its own national goals. The situation underscores the broader challenges faced by mineral-rich countries in an era marked by geopolitical tensions, economic interests, and the global transition to sustainable energy sources. Indonesia's experience serves as a microcosm of the intricate interplay between natural resources, technology, geopolitics, and sustainability. The nation's efforts to leverage its mineral wealth for economic development are emblematic of the opportunities and risks inherent in the global shift towards clean energy. The story of Indonesia's nickel reserves is not just about a commodity; it's a multifaceted narrative that reflects the complexities of our interconnected world. #Indonesia #Nickel #CleanEnergy #Geopolitics #ElectricVehicles #USChinaConflict #Sustainability #GlobalEconomy #Technology #NaturalResources

The economic component of geopolitics has never been more critical. Sadly, many policymakers continue to keep their heads buried in the sand. This is the new/old paradigm of competition. Adapt or get left behind. #economics #geopolitics #REE #competition

#REIA Weekly Newsletter https://lnkd.in/eRzQTDgU During the first six months of 2023, #China exported 27 066 metric tonnes of rare-earth permanent magnets, almost half of its domestic production. Compared to rare-earth #oxides or #metals, magnet production is a lucrative business for Chinese manufacturers, and the government incentivises their export in several ways. The mainstream #media often sensationalises anything related to China and the #rareearths, often warning the world that the next export ban could be rare earths and rare-earth permanent magnets. Analysts often point to an alleged temporary rare-earth export ban in 2010, said to have been directed at Japan. In a recently published comprehensive report, noted #trade economists Simon J. Evenett and Johannes Fritz revisited the China–Japan rare-earths dispute of 2010. Drawing upon an analysis in the recently published Global Trade Alert report on #criticalrawmaterials, they analyse the evidence about this salient episode. The findings highlight that in times of intensifying #geopolitical rivalry, there is value in checking whether salient narratives have any basis in fact. In this week’s lead article, Silvia Bobba et al investigate the recent progress of #circular strategies and estimate their effects in future scenarios for permanent magnets in e-motors, by applying a novel Circular Input Rate (CIR) indicator. The study finds that #traceability for e-motors and the quality of both remanufactured and recycled materials have been recognised as key factors to enhance #circulareconomy strategies, and to promote the creation of related business cases. Other stories include updates from REIA members Mkango Resources Ltd., Ionic Rare Earths Limited and Australian Strategic Materials (ASM) Materials, REE Market news, e-mobility and geo-political news. #sustainability #sustainabledevelopment #rareearthelements #circular #circularity #mining #export #climateaction #climatechange Badrinath Veluri Neda Bahremandi Tolou Alexandra Cristina Donea William Dawes Alexander Lemon Lee Constable Tim Harrison Pini Althaus Rowena Smith Tom Schneberger gian andrea blengini Mathieux Fabrice Martina Orefice