China's rare earth industry might have a critical weakness
What's the story
Despite its dominance in rare earth mining, refining, and exports, China has a major weakness in this sector. A recent study by researchers from the University of Science and Technology of China highlights that China is not leading in mastering key core technologies in certain fields. The research was published in the Bulletin of the Chinese Academy of Sciences.
Technological disparity
Technological gap in rare earth industry
The study emphasizes a technological gap in China's rare earth industry, with key patents for advanced functional materials largely held by Japan and the United States. These materials are used to make permanent magnets, catalysts, luminescent and polishing materials. They account for over 80% of global rare earth-related patents and are commercially vital to the industry.
Industry overview
Shift in focus from resources to technology
China's dominance in rare earth mining, refining, and exports has long been seen as a strategic advantage. However, the recent study shifts the focus from resource reserves and production capacity to high-end functional material technologies. This shift indicates that while China may lead in terms of resources and output, it is lagging behind in critical technological advancements within this sector.