Rare earth metals are used in making electric cars, wind turbines, as well as some military and other high-end technology products.Wang Changlin from China's National Development and Reform Commission told a local TV network foreign countries reliant on China's rare earths should be careful.
The threat of that brewing trade war retaliation has shifted the global focus on to Australian mining company Lynas Corporation, which is the only other major producer of rare earths outside of China.The rare earths are mined in Mount Weld in Western Australia, before being sent for processing Malaysia and the final product is then shipped to major manufacturers in the United States, Europe and Japan.
Australian resources analyst Andrew White, from stockbroking firm Curran and Co, said Lynas's global strategic value can't be overstated. The new Malaysian government, which came to power in May last year, has cracked down on regulations surrounding the company’s processing plant on the east coast of Malaysia.