Australia Think Tank: Quad Should Build Rare Earth Supply Chain

China's share of global rare earth production has dropped from 90% to 58%. The Quadrilateral Security Dialogue (QSD, also known as the Quad), an informal strategic dialogue between the United States, Japan, Australia and India that is maintained by talks between member countries is set to increase its supply of the vital elements.

Since a military coup has taken place in Myanmar in early February, the outside world is worried that the deterioration of the situation of the Myanmar authorities may affect the supply of rare earth elements (REEs). A researcher at the Hudson Institute, a conservative think tank in Washington, pointed out that China’s control of REE production also affects geopolitics.

Ian Hall, deputy director of the Griffith Asia Institute in Australia, stated in a news website via email: "The issue of REEs is urgent. The United States and Japan need REEs, and Australia also has them. A large number of rare earth deposits. It is necessary to invest in the mining and processing of REEs. This is a prudent and safe strategy."

In addition, Reuters reported at the end of March that the rare earth price index compiled by the China Rare Earth Association has risen by more than 40% from October 2020 to January this year. In the case of increased supply risks, it has risen by 25% after the end of January. The supply risk refers to the turbulent situation in Myanmar and the environmental inspection of China's REE production center.

In early March, the leaders of the United States, Japan, India, and Australia held a four-party talk (Quad). It was mentioned that under the monopoly of the Chinese regime, the four countries will each set up a coordination working group to focus on the safety and security of rare earth supplies.

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