Group 1 - Rare earth elements are a collective term for 17 rare metals, which are not "soil" but metals, and their extraction process historically made them appear soil-like [1] - Rare earths are crucial in various industries, including electric vehicles, military applications, high-end manufacturing, lighting, and communication, with China being the only superpower in this field [3][4] - The term "rare earth" gained prominence only in recent years, particularly after 2010, as its strategic value became more recognized amid global trade tensions [4] Group 2 - China dominates the global rare earth market, controlling over 85% to 90% of refining, separation, processing, and permanent magnet manufacturing capabilities [5] - In the broader category of rare metals, China maintains a leading position, with significant control in tungsten, gallium, indium, germanium, and lithium processing [5][6] - Although China is not the largest holder of lithium reserves, it has secured substantial overseas lithium resources through investments and acquisitions, ensuring a stable supply chain [6]

Group 1 - The article discusses the strategic importance of gallium (Ga) in the context of U.S.-China relations, highlighting that 98% of global gallium production is concentrated in China, which poses a significant risk to U.S. military supply chains [2][5] - Gallium nitride (GaN) technology is crucial for modern military applications, enabling significant advancements in radar, missile systems, and stealth aircraft [4][8] - The U.S. military's dependency on Chinese gallium is underscored by a report indicating that losing access to this supply could halve the production capacity of high-end weapons within 18 months [5] Group 2 - China's export control measures, including a licensing system implemented in July 2023, restrict the sale of gallium for military purposes, directly impacting U.S. military procurement [7] - A comprehensive ban on gallium exports to the U.S. is set to take effect in December 2024, which is expected to lead to a 77% drop in U.S. gallium imports and significant production delays for military contractors [10] - Collaborative efforts among China, Russia, and Mongolia to intercept gallium shipments have further tightened supply, leading to a 60-fold increase in black market prices with no available product [10] Group 3 - The U.S. government's attempts to mitigate the gallium supply crisis through domestic production, outsourcing to allied countries, and recycling efforts have largely failed due to technical and economic challenges [13][14][15] - Domestic production efforts are hindered by the need for high-purity gallium, which remains dependent on Chinese technology, creating a cycle of reliance [13] - Outsourcing to Canada and Australia has proven costly, with production costs exceeding those in China by 23 times due to patent monopolies held by Chinese companies [14] Group 4 - The gallium crisis illustrates a shift in global power dynamics, with China transitioning from a resource exporter to a key player in setting technological and regulatory standards [17][18] - The article emphasizes the importance of technological independence and resource management in the context of international competition, noting that China holds 81% of gallium extraction technology patents [18]