The Political Economy of Rare Earth Elements: Rising Powers and Technological Change

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Rare earth elements have a strategic value for China, but that could be overstated

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Preview this item Preview this item. The political economy of rare earth elements : rising powers and technological change Author: Ryan David Kiggins Publisher: Basingstoke Hampshire : Palgrave Macmillan, Find a copy online Links to this item View full text.

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The problem , however, is that they are rarely found in sufficient quantities in a single location which makes their mining economically unviable. But due to the huge environmental costs associated with the mining and processing of REEs, many developed countries are sometimes reluctant to do it themselves. The mine did open later but only after it adopted a more environment friendly technology.

Similarly, the Malaysian government recently asked Lynas , an Australian rare-earths mining company, to ship its radioactive waste back to Australia if it wanted to renew its operating license. I hope everyone can interpret it correctly.

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Markets do seem to be cautiously listening to the rhetoric coming out of China. Given the possibility of REEs becoming a trade war weapon, their prices have been surging over the past few months. One set of experts argue that REEs are not really rare — because vast amount of their deposits exist across a range of countries. Thus, in emergency situations, the US and its allies would make the necessary investments and create alternate supplies of REEs. Meanwhile, the other set of experts argue that if China decides to weaponise REEs, the US firms and consumers would have to bear the costs.

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