The SCMP writes: “Analysts say US deal for Ukraine’s rare earths – meant to replace China as a supplier – will be of little use without the ability to process it.”
China has about 60 per cent of the world’s reserves of rare earth elements and is responsible for about 90 per cent of all refining, which entails separating the metals from other deposits. It produced 270,000 tonnes of rare earths last year, according to the US Geological Survey (USGS).
Ukraine has not the capacities, not in production and not in refining, to be anyway close to being able to replace China. Ukraine will need decades and many billion dollars of investments before any relevant increase of output can be achieved.
China is very confident to remain the market leader and decisive provider of rare earths – to the displeasure of the US. China knows that investing into Ukraine is a silly high risk as long as the conflict with Russia is not settled and the criminal and corrupt structures are not dissolved.
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