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Evolution and insights into the network and pattern of the rare earths trade from an industry chain perspective

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  • Zuo, Zhili
  • McLellan, Benjamin Craig
  • Li, Yonglin
  • Guo, Haixiang
  • Cheng, Jinhua

Abstract

As strategic mineral resources, rare earths (RE) are globally significant, with demand growing rapidly as the world moves to new energy technologies. This study applied complex network theory to analyze global RE trading data from the perspective of the industry chain from 2005 to 2020. We find the following: (i) The increase in uncertain global events has implications for the stability and security of the global RE industry; (ii) The trade flow upstream is characterized by “Europeanization”, and midstream and downstream are characterized by “Asianization”; (iii) The international RE trade network has gradually become closer, and the participation of various countries has gradually increased. The upstream and downstream trade is mainly concentrated in China, Germany, Australia, the United States, Japan, etc., and the midstream trade shows a hollowing-out trend in Europe and the United States; (iv) The international RE trade both upstream and downstream shows a trend of integration, while the midstream shows a trend of diversification, and COVID-19 has exacerbated the reshaping of the global trade pattern. Based on the above results, we recommend diversifying the supply, expanding the global circle of trusted trading partners and establishing a risk response mechanism. This study can provide policymakers and industry practitioners with an in-depth interpretation based on the industry chain and reference for their adjustment and formulation of RE trade policies.

Suggested Citation

  • Zuo, Zhili & McLellan, Benjamin Craig & Li, Yonglin & Guo, Haixiang & Cheng, Jinhua, 2022. "Evolution and insights into the network and pattern of the rare earths trade from an industry chain perspective," Resources Policy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:jrpoli:v:78:y:2022:i:c:s0301420722003567
    DOI: 10.1016/j.resourpol.2022.102912
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