Due to some major events that started last Friday, the rare earth sector has performed exceptionally well this week.
On October 13th, the rare earth permanent magnet sector surged by 7.45%, standing out as a deep red amidst a sea of green; on the 14th, the market saw a comprehensive downturn, with the rare earth sector opening sharply higher before retreating, ending down 2 points, but still showing a relatively strong overall performance.
In the global rare earth market, the escalation of China’s export control measures on rare earths has triggered a new reshuffling of the global rare earth market. As the world’s largest rare earth supplier, China’s export controls have led to significant price fluctuations in rare earths, causing anxiety to surge among Western countries led by the United States, who are Comprehensively promote the “de-Chinese” process of the rare earth industry. However, it is not easy for Western countries to achieve “domestic substitution” in rare earths.
The home improvement industry is also undergoing a new reshuffling. With the transformation of consumer concepts, technological innovation, and increased market competition, the home improvement industry is shifting from internal competition to external cooperation, from traditional models to full-chain restructuring, and from product orientation to user orientation. Some companies that cannot adapt to these changes will be eliminated, while those that can adjust their strategies and innovate their business models in a timely manner are expected to stand out.
Rare earths refer to a total of 17 metallic elements in the periodic table, which are important raw material resources for the manufacturing of new materials and are known as the “industrial vitamin.”
From new energy vehicles and consumer electronics to aerospace and military manufacturing, rare earths are everywhere, making them an indispensable strategic resource in the modern industrial system.
More importantly, rare earths are divided into light rare earths and heavy rare earths.
Light rare earths, such as lanthanum, cerium, and neodymium, are widely used and have high production volumes, primarily in new energy vehicles, chip manufacturing, and other areas, having a greater relevance to our daily lives.
Heavy rare earths, such as terbium, dysprosium, and yttrium, are rarer, have higher purification difficulty, and are primarily used in strategic fields such as aerospace, military, and high-end materials, including aircraft radar and missile navigation, where their value is obviously much higher.
China is undoubtedly a top player in the rare earth sector. In terms of reserves, China has the world’s largest rare earth reserves and is the world’s largest supplier of rare earths.
According to the U.S. Geological Survey data for 2024, China has confirmed rare earth reserves of 44 million tons, accounting for 38% and ranking first globally. Brazil and the United States follow with reserves of 21 million tons and 19 million tons, respectively, ranking second and third.
The United States also has substantial rare earth reserves, so why does the U.S. get agitated when China uses the rare earth strategy?
The US does indeed have substantial reserves of rare earth elements, but they are primarily light rare earths, making the country severely constrained in terms of heavy rare earth resources.
China is not only the world’s largest producer of rare earth resources but also the only country globally with a complete rare earth industry chain—
From mining and refining separation to metal smelting and magnetic material manufacturing, China holds absolute dominance in every link of the global rare earth supply chain!
China accounts for approximately 58% of the global total production capacity in rare earth mining, while it dominates nine-tenths of the global production capacity in separation, smelting, and magnet manufacturing, forming an almost unshakable monopoly advantage.
So, when the U.S. frequently launches trade and technology wars against China, wildly swinging the tariff bat, and cuts off supply of advanced technology products like chips, China uses the same method to repay in kind, fully utilizing and flexibly leveraging the trump card of rare earths.
