On September 12th, according to Reuters, Malaysian Prime Minister Anwar Ibrahim stated on the 11th that Malaysia would implement a policy to prohibit the export of rare earth raw materials to ‘avoid the extraction and loss of resources,’ making Malaysia another country to restrict the export of critical minerals.
In addition to restricting the export of rare earth raw materials, Malaysia will also strengthen its rare earth raw material processing industry to maintain the country’s rare earth value chain and provide additional income for Malaysia. Anwar stated that the ban will ensure the maximum return of Malaysia’s national interests, with the rare earth industry expected to contribute $2 billion to Malaysia’s GDP by 2025 and create nearly 7,000 job opportunities.
Anwar also mentioned that reducing dependence on critical mineral production in China, especially in the production of high-tech equipment, is essential to safeguard national interests.
Data shows that rare earths are a collective term for lanthanide elements and 17 other rare metals on the periodic table. They are widely used in products ranging from lasers and military equipment to consumer electronics such as electric cars, wind turbines, and smartphones, including magnets, and hold strategic value.
According to the latest data from the U.S. Geological Survey, the top 10 countries with the highest rare earth production in 2022 are China (210,000 tons), the United States (43,000 tons), Australia (18,000 tons), followed closely by Myanmar, Thailand, Vietnam, India, Russia, Madagascar, and Brazil. In terms of reserves, the global total rare earth reserves are estimated at about 130 million tons, with the majority located within China’s borders, estimated at 440 million tons, followed by Vietnam (220 million tons), Brazil, and Russia, each with over 200 million tons, followed by India, Australia, the United States (2.3 million tons), and Greenland.
As the world’s largest producer of rare earth minerals, China accounts for 70% of global rare earth mining output, while its processing of rare earths and magnet production make up 85-90%. In 2010, China imposed restrictions on the export of rare earths to Japan, leading Japan to seek alternative suppliers, such as investing in Australian rare earth mining company Lynas. By 2018, Japan had reduced its reliance on Chinese imports of rare earths to 58%.
Amid the U.S.-China trade conflict, China began restricting the export of gallium and germanium-related items required by the semiconductor industry in July this year. This raised concerns in the market about China potentially limiting the export of other materials. In late August this year, according to Indian media reports, the Indian government is also considering banning the export of four rare metals: lithium, beryllium, niobium, and tantalum. This move aims to ensure self-sufficiency in critical mineral resources. Now, Malaysia has also announced a ban on the export of rare earth raw materials, highlighting the increasing global emphasis on strategically significant mineral resources.
However, Malaysia’s rare earth reserves account for only a small fraction of global reserves, estimated at 30,000 tons. Therefore, Malaysia’s ban on the export of rare earth raw materials is expected to have a relatively minor global impact. It is worth noting that, despite being the world’s leader in rare earth reserves and production, China also purchases rare earths from other countries for processing, with approximately 8% of its rare earth ore coming from Malaysia.
It’s worth mentioning that rare earth prices have recently experienced significant fluctuations, largely due to the closure of mines in the Kachin State’s Bhamo region, Myanmar, in early September for inspection purposes. This closure raised short-term supply concerns. Myanmar is the fourth-largest source of rare earth mining, with a production of 12,000 tons of rare earth oxide last year, accounting for 4% of global rare earth mining output. Chinese trade data shows that Myanmar accounted for 38% of China’s rare earth imports in the first seven months of this year. The suspension of rare earth mining in Myanmar also led to increased stockpiling in China ahead of the holiday season, causing Chinese rare earth prices to surge to their highest level in 20 months.
Recommended Reading:
- Extracting Rare Earth from Old Hard Drives: WD & Microsoft
- Myanmar Earthquake: Impact on PC Hardware Supply?
- Future of Earth: Supercomputer Predicts Human Extinction
- Shocker: US Chip Titans Slump in Ban Update
- From Assembly to Innovation: Malaysia Semiconductor Story
- 5-Month Mystery Solved of Voyager 1: 3% Memory Failure!
Disclaimer: YUNZE maintains a neutral stance on all original and reposted articles, and the views expressed therein. The articles shared are solely intended for reader learning and exchange. Copyright for articles, images, and other content remains with the original authors. If there is any infringement, please contact us for removal.
