Odd Lots Javier Blas on China's Rare Earths Dominance
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Apr 15, 2025 
Javier Blas, a Bloomberg Opinion columnist known for his insights on commodities and energy markets, dives into China's grip on rare earth metals. He debunks the myth that these metals are rare, explaining their surprising commonality and minor role in global trade. The conversation highlights the implications of U.S.-China tensions, environmental challenges in processing, and Japan's proactive resource stockpiling. With a humorous touch, they discuss how rare earths show up in everyday items like vacuum cleaners, revealing their unexpected ubiquity.
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Rare Earth Imports
- The US imported only $170 million of rare earth metals in 2024.
- This is a tiny fraction (0.03%) of total US-China trade, comparable to olive oil imports.
Rare Earth Uses
- Rare earth metals have important niche applications, but the most common use is in vacuum cleaners.
- Higher prices would incentivize both substitution and recycling.
Rare Earth Processing
- China provides 80-85% of the world's rare earth metals, not because they're rare, but because processing is polluting.
- Other countries avoid this processing due to environmental concerns.