May 2023
Rare earth magnets, such as those installed in wind turbines or e-cars, derive almost exclusively from Chinese production. According to media reports, the Middle Kingdom is considering banning the export of technology needed for their production. This could further fuel trade disputes with the U.S. and other Western economic powers.
The Chinese government is considering banning exports of rare earth technologies used in the production of wind turbines and electric motors. According to a report by Nikkei Asia, the Chinese government wants to restrict the exports to protect its domestic market and drive technological progress at home. Demand in China for rare earth products used in the country’s domestic wind power and e-mobility sectors is growing. The Middle Kingdom, which already ranks among the world’s leaders in renewable energies, wants to further ramp up its share of green electricity resources. The country’s booming EV industry also relies on rare earth magnets.
Reaction to western export controls
The Chinese decision may be a reaction to growing export restrictions by Western countries on computer chips and other high-tech products. In recent months, the U.S. and other countries have tightened export controls to limit China’s access to key technologies. The trade dispute has so far culminated in the so-called chip war, which makes it more difficult for China to import sophisticated microchips. The Chinese government sees the move as a threat to its economy and, in return, wants to reduce its dependence on Western technologies.
Impact on the world economy
China is the largest producer of rare earth metals and controls over 90 % of their processing. Restricting exports could drive up prices for these raw materials and hamper the production of high-tech devices worldwide. This trend is confirmed by a new OECD report, which shows that an increasing number of countries are placing critical raw materials such as rare earths under export restrictions. According to OECD findings, around 10% of the world’s export value is affected by at least one export restriction measure. In addition to China, countries such as India, Argentina, Russia, VietnApplications
This technologies benefit from Strategic Metals
Technological progress is advances with giant strides. Electromobility, renewable energies, fast Internet with fiber optics: All these future technologies benefit from Strategic Metals. Demand is therefore increasing, but production cannot grow to the same extent. However, most companies cannot afford to stock-up significant stocks of strategic metals.
Take advantage of this situation by purchasing strategic metals as tangible assets. This is how you support the producers of state-of-the-art technologies and at the same time have a chance to make a profit.
By the way: Strategic metals are inflation-proof and crisis-proofas tangible assets. Unlike savings or shares.
Am, and Kazakhstan are also closing off access to their raw materials markets. These developments could inhibit technological progress and complicate the transition to a more sustainable economy, the OECD analysis says.
Strategic Metals
The properties of strategic metals are manifold. They are exciting as tangible asset through the technologies that benefit from them.
The TRADIUM Offer at a Glance
The properties of strategic metals are manifold. They are exciting as tangible asset through the technologies that benefit from them.
Tradium Applications
This technologies benefit from Strategic Metals
Technological progress is advances with giant strides. Electromobility, renewable energies, fast Internet with fiber optics: All these future technologies benefit from Strategic Metals. Demand is therefore increasing, but production cannot grow to the same extent. However, most companies cannot afford to stockup significant stocks of strategic metals.
Take advantage of this situation by purchasing strategic metals as tangible assets. This is how you support the producers of state-of-the-art technologies and at the same time have a chance to make a profit.
By the way: Strategic metals are inflation-proof and crisis-proofas tangible assets. Unlike savings or shares.
Strategic Metals for the Energy and Mobility of the Future
Increasing parts of electricity come from renewable energy sources. Wind power and solar power are driving forces here. Electric vehicles are increasingly revolutionizing individual mobility. Both sectors have seen enormous growth rates worldwide in recent years. However, the availability of the strategic metals required here is limited.
Investors who own these strategic metals as tangible assets can benefit from the growing interest in sustainable climate policy and the ever stricter environmental regulations. They own the core raw materials for energy and mobility of the future. A strategic asset with potential.
Supermagnets for Environmental Protection
Many environmentally friendly technologies are based on the use of extremely strong permanent magnets. These are used in wind turbines, e-bikes or electric vehicles, but are also used for headphones, loudspeakers and medical technology (e.g. in MRI). The most powerful permanent magnets consist of neodymium, iron and boron (NdFeB).
These supermagnets are the first choice for the foreseeable future to convert mechanical energy into electrical energy and vice versa. By adding dysprosium, praseodymium or terbium, their magnetic field also remains stable up to temperatures of 200 °C (392 °F). Their strength means that NdFeB magnets can be installed in a resource-saving and space-saving manner.
“International diversification is becoming increasingly important for investors. Commodities gain weight in the long term, especially strategic metals.”
Matthias Rüth, Managing Director
