Rare Earth Elements Supply Restrictions: Market Failures, Not Scarcity, Hamper Their Current Use in High-Tech Applications

摘要

China has recently curtailed the export of rare earth elements (REE). An assessment by the World Trade Organisation at the request of the U.S. and EU published in the spring of 2014 concluded that China is not complying with the principles of free trade. But is China's export policy the only reason for the West's problems with access to REE? Not really, and at most only partially, in my opinion. The situation is far more complex. Chinese export restrictions are causing problems for many Western companies that use metals such as neodymium, europium, and dysprosium. Although only used in tiny quantities, these are essential raw materials for high-tech products such as miniaturized speakers in thin smart phones and magnets in electric vehicles and wind turbines. Consequently, the supply restrictions could hamper the transition to low-carbon energy and mobility systems (e.g., ref 1). Using detailed trade data and information about the REE-content of products, we have calculated the worldwide value of products containing REE to be at least 1.5-2 trillion dollars.2 This is nearly 5% of the global Gross National Product. Around 20% of Japan's exports,- measured by value, contain REE (see Table 1). There is a genuine fear that if high-tech companies in OECD countries were to lose access to REE, they would have to relocate to China or face erosion of their competitive edge: the use of alternative materials usually compromises product quality. All in all, there are huge interests at stake.