China relaxes rare earth curbs to avert drone industry slowdown: DigiTimes

China seems to have relaxed its export restrictions on rare earth elements (REEs) amid concerns that the measures were stifling industrial growth, particularly in drone manufacturing, according a report by Taiwan-based DigiTimes published Sunday.Sources told DigiTimes that China has been loosening its export controls on rare earths like neodymium in recent weeks, as domestic drone manufacturers have flagged significant production delays since Beijing first imposed restrictions on REE extraction and separation technologies back in late 2023.Rare earths, a group of 17 elements crucial for high-tech and clean energy applications, have long been a strategic resource for China, which controls over 60% of their global supply.Amid escalating trade tensions with the US this year, China placed seven rare earth minerals to its export controls list. The new restrictions also covered finished products like neodymium-iron-boron magnets, which are essential components in sectors ranging from automotive to semiconductors.According to sources cited by DigiTimes, Chinese drone manufacturers were among the hardest hit by these export curbs, as REE magnets are crucial for high-performance motors. Neodymium-iron-boron ones, in particular, allow for lighter, more efficient drone engines with greater torque and speed, industry experts said.The earlier restrictions have led to hundreds of motors being stuck in final stages of production, leading to drone deliveries originally slated for the second half of 2024, the report said. However, supply chains have now begun to normalize following behind-the-scenes negotiations between Beijing and Washington, it added.The episode highlights the mutual dependence between the world’s two biggest economies on critical materials. The US has faced pressure from dwindling reserves, while China contends with risks tied to growing stockpiles.Though Beijing has not formally announced a policy change, industry sources told DigiTimes they are already seeing a softening of enforcement, with the delayed drone shipments scheduled to proceed on time.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com