The B2B platform for full-electric and plug-in hybrid electric vehicles: Industry News

While China mines usually make the headlines for catastrophic accidents, a draft report by the Ministry of Industry and Information Technology has triggered new concerns inside the EV industry as the text is proposing a ban on exports of several metal component of EVs.

Although lithium-ion has, apparently, not been listed amongst the metals banned from export or subject to restrictions, electric motors and catalytic converters will be directly affected by this decision if adopted.

Bans and restrictions

Amongst the rare metals potentially subject to the ban are: terbium, dysprosium, yttrium, thulium and lutetium. Other metals including europium, cerium, neodymium and lanthanum would be limited by an overall export quota of 35,000 tonnes a year.

According to Alistair Stephens from Australia’s rare metals group Arafura in an interview given to the Telegraph: “this isn’t about the China holding the world to ransom. They are saying we need these resources to develop our own economy and achieve energy efficiency, so go find your own supplies”.

He nonetheless added that China had put the world out of business in rare materials in the 1990s by flooding the market.

95% of the earth’s rare metals

Today, China mines 95% of the world’s rare materials and as such has a lithium-ion productive capacity of 8,000 tons of which 30%-60% is exported. Rare materials are hard to find and even harder to extract.

No replacement has been found for neodymium that enhances the power of magnets and is a key component of PHEV motors. Neodymium is not found in nature but rather is a component of monazite and bastnasite. The main mining areas for these metals are China, the US, India, Sri Lanka and Australia with overall reserves thought to be of 8 million tonnes.

The Japanaese government is also believed to be preparing its own “Strategy for Ensuring Stable Supplies of Rare Metals” which is calling for `stockpiling’ and planning for “securing overseas resources”.