Rare earth metals have gained significant attention from global leaders following China's temporary suspension of most exports a couple of months ago. However, the Chinese government has focused on these metals for nearly half a century.
During Mao Zedong's 27-year rule, the emphasis was primarily on increasing the quantity of iron and steel production, often at the expense of quality. This approach resulted in the production of weak iron and steel that failed to meet industrial needs.
In the late 1940s, metallurgists in Britain and the United States discovered a method to enhance the quality of ductile iron, commonly used in pipelines and car parts, by adding cerium, a rare earth element, to molten metal. Cerium was relatively easy to separate from ore compared to other rare earths.
When Deng Xiaoping became China's paramount leader in 1978, he sought to improve the country's iron and steel industry. He appointed Fang Yi as vice premier and director of the State Science and Technology Commission, who then led a team of geologists and scientists to Baotou, Inner Mongolia, known for its steel mills and iron ore mines.
Fang's team recognized the potential to extract not only iron but also valuable light rare earths, including cerium and lanthanum, from the region's iron ore deposits. Additionally, they identified medium rare earths like samarium, which had applications in military technology.
During his visit to Baotou, Fang emphasized the importance of rare earths in various industries, including steel, electronics, and new materials. As Sino-American relations improved, he facilitated visits for Chinese engineers to advanced American factories.
Separating rare earth metals is complex, requiring multiple chemical processes and significant amounts of acid. In the 1950s and 1960s, both the United States and the Soviet Union developed costly methods for this separation. In contrast, China directed its research institutes to create a more cost-effective approach, utilizing inexpensive plastic and hydrochloric acid.
This cost advantage, combined with lax environmental regulations, allowed Chinese refineries to outcompete Western counterparts, leading to the closure of nearly all Western rare earth refineries.
Chinese geologists later discovered that the country possessed nearly half of the world's rare earth deposits, including rich heavy rare earths essential for various applications. By the 1990s and 2000s, Chinese engineers had perfected the separation of heavy rare earths, establishing a near-total monopoly on their production.
Deng Xiaoping famously remarked in 1992, “The Middle East has oil; China has rare earths.” By this time, he and Fang had already prepared the next leader for the rare earth industry, geologist Wen Jiabao, who later became China's premier and was personally involved in rare earth policy decisions.
Research contributions were made by Li You.