Vietnam Rare Earths Operation Set to Challenge China’s Supremacy

Vietnam Eyes Resumption of Major Rare Earths Extraction Operation with Potential to Challenge China’s Supremacy.

With an aim to challenge China’s dominion in an industry vital for tech manufacturing worldwide, Vietnam is set to recommence operations in its largest rare earths mine.

A venture endeared by the West, this project has the potential to rival the biggest in the world, as per the declaration of two companies involved. The plan is part of a broader strategy to fortify Vietnam’s rare earths supply chain along with improving its ability to transform ores into metals, which are indispensable components in the construction of elements used in electric vehicles, smartphones, and wind turbines.

As an initiatory manoeuvre, Vietnam’s government anticipates issuing tenders for numerous lot divisions of its Dong Pao mine before the conclusion of the present fiscal year, reveals Tessa Kutscher, a senior executive at Australia’s Blackstone Minerals Ltd, which is poised to bid for at least one concession.

The intended reactivation of Dong Pao – the specifics concerning timeline, scale and quantum of international financial backing are emergent news – emerges amid prevailing global concerns regarding susceptibility to supply interference because of China’s hold on strategic minerals and its ongoing tiffs with the United States and its associates.

This year Beijing enforced export restrictions on minor metals used in semiconductor production, a move which an influential Chinese policy advisor warned is merely the inception.

Ranked second by the US Geological Survey in terms of the volume of rare earth deposits, Vietnam’s reserves have been majorly untapped, predominantly due to low pricing driven by China’s quasi-monopoly on the international market.

As part of a bid to strengthen bilateral affiliations on his recent tour to Hanoi, US President Joe Biden entered a pact to elevate Vietnam’s lure for investors interested in its rare-earth reserves.

Conversations with investors, analysts, and foreign officials outlined the blueprint for Vietnam, vindicating that cautious conversations surrounding the diversification of supply chains to decrease reliance on China are transitioning into tangible measures.

Some conceded the complications inherent in pioneering a rare earths centre, but strong endorsements suggested that this venture could position Vietnam as a noteworthy competitor while soothing strategic apprehensions – even if dominance continued to be retained by China. Visit to know about Chinese banks earnings debt concerns .