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Major coins were seen trading higher on Monday evening as the global cryptocurrency market cap rose 1.3% to $850 billion. Price Performance Of Major Coins Coin 24-hour 7-day Price Bitcoin BTC/USD 0.45% 3% $17,211.65 Ethereum ETH/USD 2.85% 8.9% $1,324.26 Dogecoin DOGE/USD 4.35% 6.7% $0.08 Top 24-Hour Gainers (Data via CoinMarketCap) Cryptocurrency 24-Hour % Change (+/-) Price Aptos (APT) +34.1% $5.27 Gala (GALA) +29.8% $0.04 Curve DAO Token (CRV) +13.6% ??$0.65

See Also: Top Trading Platforms For Altcoin Investing

Why It Matters: Bitcoin, Ethereum, and Dogecoin were in the green as investors found appetite for tech shares, which led to the Nasdaq closing higher for a second consecutive session. At the time of writing, U.S. stock futures were down.

On Monday, a survey released by The Federal Reserve Bank of New York's Center for Microeconomic Data indicated that short-term or one-year inflation expectations continued to decline.

The data came ahead of the issuance of the latest CPI data, which will be released during Thursdays pre-market session. Federal Reserve Chair Jerome Powell is also expected to make a speech on Tuesday in Stockholm, Sweden.

Bitcoin is rejecting an important level as Powells speech approaches, noted Michal van de Poppe. The trader said that Bitcoin will probably sweep towards $17,100 before another bounce towards $17,500 for bearish divergence.

The cryptocurrency trader said theres good volatility on the apex coin.

#Bitcoin rejecting at crucial area as Powell’s speech is approaching yesterday + simply crucial resistance zone.

Probably sweep towards $17.1K before another bounce towards $17.5K for bearish divergence or we long at $16.9K.

Good volatility.

Lots of dips on #altcoins too. pic.twitter.com/4j7HPFd0ZK Michal van de Poppe (@CryptoMichNL) January 9, 2023

Justin Bennett said he observed beautiful stair-step action on Bitcoin so far in 2023. The trader pointed out that Bitcoin retested $16,700 last week and held above $16,900 over the weekend and was about to test $17,300.

GM fam. ?

Beautiful stair-step action from $BTC so far in 2023.

$16,700 retest last week, closed and held above $16,900 over the weekend, and about to test $17,300. #Bitcoin https://t.co/6Lhnzhsdu5 pic.twitter.com/qCUgFoUj1L Justin Bennett (@JustinBennettFX) January 9, 2023

Wall Street is pricing in the Fed to be one and done with tightening and possibly cutting rates at the end of the year, said Edward Moya, a senior market analyst at OANDA.

Cryptos are rallying today, but BNB, Cardano, Solana, MATIC, and Polkadot are easily outperforming Bitcoin and Ethereum, said Moya. SOL soared 11% to $16.43 over a 24-hour period at the time of writing.

Solana was a casualty of the collapse of FTX and Alameda Research. Everyone knew Solana had deep financial ties with FTX, so it was no surprise that the SOL prices collapsed. Solana was supposed to be the Ethereum killer and it still has a chance if it can survive this dark period.

Marcus Sotiriou, a market analyst with GlobalBlock, noted that Solana is performing well after the non-fungible token community united following the exit of the two most valuable NFT projects DeGods and Y00ts which have moved to Ethereum and Polygon (MATIC) respectively.

This shows the resilience of the Solana NFT community, providing optimism for SOL token holders. A meme coin, BONK, was airdropped to many Solana NFT communities, excluding DeGods and y00ts, and climbed almost 50x in the space of a week, which further united the Solana NFT community, said Sotiriou.

Read Next: Ethereum Rival Cardano's 20% Surge Amazes Analyst: 'Did They Figure Out A Cure For Cancer?'

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Power Rankings: Indiana climbs into top 3; four new teams join the Top 25

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Power Rankings: Indiana climbs into top 3; four new teams join the Top 25

Ohio State allowed a whopping 16 points at Illinois, seven more than it had in any other game this season, and the Buckeyes were ticked off about it.

“Definitely bothers me,” defensive lineman Kayden McDonald said. “If we want to be the best defense in the country, we can’t let people score.”

As the midpoint of the 2025 season arrives, even the most dominant unit on the most dominant team is looking for areas to improve. This has largely been a season of imperfections and invalidated predictions. Don’t stare directly at the preseason polls or you’ll damage your eyes.

Week 7 highlighted some problems, from Oklahoma’s offense to Tennessee’s third-down defense (and offense) to LSU’s general sloppiness to Ole Miss’ inability to finish drives. And that’s just in the SEC. Oregon quarterback Dante Moore looked shaky in a 10-point loss to Indiana, and Indiana quarterback Fernando Mendoza threw an ugly pick-six in the victory. Michigan‘s normally sound defense had no answers for Jayden Maiava, King Miller and USC, which has its own flaws but looked very sharp against the Wolverines.

We’re at the halfway point, and our latest power rankings examine the biggest obstacles facing the top teams. — Adam Rittenberg

Previous ranking: 1

There’s not much to nitpick about the Buckeyes, who are 6-0 and have outscored their opponents 221-41, never facing legitimate danger of a loss. But Ohio State’s run game remains a work in progress after losing TreVeyon Henderson and Quinshon Judkins to the NFL from the national championship team. The Buckeyes averaged just 2.9 yards per carry in Saturday’s win at Illinois, with only one rush longer than 10 yards. CJ Donaldson reached the end zone twice, and Ohio State’s offensive line generated good movement early on, but the explosive runs didn’t come.

“We need to go and look to see: Is it a blocking issue? Is there a personnel issue?” coach Ryan Day said. “We’ve got to look at all those things. But I thought the offensive line was moving people today.”

The run game hasn’t been awful but remains a work in progress. — Rittenberg


Previous ranking: 2

The Hurricanes will be a favorite in the rest of their games, as no ranked teams remain on their regular-season schedule. They also just had their final open date of the season this past weekend, so Miami will play seven straight games to close out the slate before championship game weekend. The biggest obstacle is making sure the Hurricanes stay as focused on the teams ahead as they were when playing Top 25 teams earlier in the season. Under Mario Cristobal, Miami has lost eight games as a favorite, including two this past season that cost it a spot in the ACC championship game. Miami is the prohibitive favorite now to get to Charlotte and win the ACC. — Andrea Adelson


Previous ranking: 7

After what was a pretty complete performance at Oregon on both sides of the ball to notch a 30-20 win, Indiana doesn’t just look like a team that is College Football Playoff-bound for the second straight season; it looks even better and more confident than last year’s squad. With more experience, better talent and Curt Cignetti at the helm, the Hoosiers’ biggest obstacle might be themselves. As Cignetti pointed out postgame, penalties (specifically false starts) were a major issue. Outside of that, however, it’s Ohio State that is their biggest competition in the Big Ten. They avoid each other in the regular season which could set up a potential matchup in the championship game in Indianapolis.

Regardless, if Indiana makes it to that game, it’s a near certainty that it’ll be back in the playoff, where the ghosts of what Notre Dame did to the Hoosiers in the first round this past season await. — Paolo Uggetti


Previous ranking: 5

The Aggies are for real, moving to 6-0 for the first time since 2016 and only the second time in the past 30 years with a win over Florida. But now the real fun starts. They’ll roll into Fayetteville to face Arkansas for just the second time since 1990, in Bobby Petrino’s first home game as the interim coach on a night in which the Hogs are honoring Darren McFadden. They follow that up with trips to LSU and Missouri, and won’t return home until Nov. 15. The A&M defense is bringing back old Wrecking Crew feelings, holding three straight SEC opponents to 100 yards or less and dominating on third down, becoming the first major conference program in the past 20 years to hold three straight teams to one or fewer conversions on third down. The old saying is that defense travels. We’re about to find out. — Dave Wilson


Previous ranking: 4

The Rebels are getting ready to face the most difficult part of their schedule, starting with Saturday’s SEC road game at Georgia. They’ll play at Oklahoma the week after that, followed by a home game against South Carolina on Nov. 1. If Ole Miss is to survive that stretch, it’s going to need to eliminate the self-inflicted mistakes it keeps making. The Rebels are the third-most penalized team in the SEC with 73.8 yards per game. They also rank 14th in the league in turnover margin at minus-4, losing three fumbles and throwing five interceptions. In Saturday’s 24-21 win against Washington State, the Rebels were penalized eight times for 99 yards. — Mark Schlabach


Previous ranking: 8

The Red Raiders continue to show they’re dynamic, malleable and can win however they need. This week, they lost starting quarterback Behren Morton to injury and backup Will Hammond struggled through the air, going 7-of-16 for 42 yards with an interception, yet they won 42-17 over Kansas. Hammond added 61 yards and two scores, but the superstar was running back Cameron Dickey, who piled up 263 yards and two touchdowns, averaging 12.5 yards per carry. Tech has won six straight games by 20 or more points, and it has all been seemingly different. But the one constant is that the Red Raiders have fielded perhaps the best defense in school history. The only concern for Tech right now is the health of Morton, who has left three games this season with an injury, though the Red Raiders have a lot of belief in Hammond, who put on a show in relief against Utah. The schedule looks extremely favorable, with the remaining teams having a 19-18 record, and that includes 6-0 BYU. — Wilson


Previous ranking: 9

The Crimson Tide have reeled off five straight wins since losing the opener to Florida State, but they have done it without a strong run game. Alabama has struggled to consistently move the ball on the ground, and losing Jam Miller to a concussion in the fourth quarter of a 27-24 win over Missouri on Saturday is certainly not the news this team needs headed into the Tennessee game this week. Alabama ranks No. 103 in the nation in rush offense and is averaging just 3.89 yards per rush. Against Missouri, Alabama had 43 carries for just 126 yards. Ty Simpson has been carrying this offense, but at some point, Alabama is going to have to run the ball more consistently than it has this season. — Adelson


Previous ranking: 10

If the Bulldogs are going to stay in the SEC title mix, they’re going to have to figure out a way to get opponents off the field on third down. The Bulldogs rank 13th in the league in that area, allowing their opponents to convert 40.2% of the time. By comparison, when Georgia won its second straight CFP national title during the 2022 season, it led the SEC and ranked No. 2 in the FBS at 26.6%. It’s the biggest reason why the Bulldogs lost to Alabama 24-21 at home and had to come from behind to survive in their road victories at Tennessee and Auburn. The Crimson Tide converted nine of their 11 third-down plays while building a 24-14 lead in the first half. Auburn had a 75-yard touchdown drive to start the game and controlled the ball for nearly 22 minutes in the first half, converting 8 of 11 third downs along the way. The Bulldogs have made great adjustments at halftime of games, but they need to do better coming out of the gates. — Schlabach


Previous ranking: 3

Since 2022, this Ducks team has run on a very particular kind of energy: success at home in front of a frenzied crowd that had helped them win 18 straight games in a row at Autzen Stadium. But after Indiana came into town and outmatched Oregon to the tune of a 30-20 result, Dan Lanning’s team will need to reset and find its groove again. The loss does not deter the Ducks’ season-long goals, but it does force them to reevaluate some of their weaknesses, including an inability to match the energy of a team that is as good or better than they are (see: not just Indiana but Ohio State in the playoff last year, too). Throughout this dominant stretch, Lanning has been exceptional at continuing to motivate his team to keep its success going. What will his approach be after Oregon just got punched in the mouth? — Uggetti


Previous ranking: 12

If the concerns surrounding Georgia Tech’s close wins to start the season suggested the Yellow Jackets could be susceptible to an upset, it sure didn’t seem to be true in Week 7. Georgia Tech jumped out to an early 15-0 lead and never looked back in a 35-20 win over Virginia Tech. Better news, the ground game, which had been dependent on Haynes King‘s rushing ability, racked up 268 yards, while King proved he can win with his arm too, completing 20 of 24 passes for 213 yards and a score. That type of offensive balance will be the key to the Jackets staying undefeated moving forward. — David Hale


Previous ranking: 11

Tennessee allowed 16.1 points per game and 4.6 yards per play during last year’s College Football Playoff run. This year, the Volunteers are allowing 29.3 points per game and 5.1 yards per play. On Saturday in Knoxville, they needed a 146-yard rushing day from DeSean Bishop and a 109-yard receiving day from Braylon Staley to survive a track meet with Arkansas, 34-31. The win moved the Volunteers to 5-1, and as long as quarterback Joey Aguilar and company can keep the points and yards flowing, they could be fine. But they’ve allowed 24, 26, 31 and 34 points in four of their wins (and 44 in their loss). Trying to win track meet after track meet is a tough way to remain in the playoff hunt. — Bill Connelly


Previous ranking: 13

It’s safe to say that LSU quarterback Garrett Nussmeier hasn’t gotten as much help as he needs this season. The run game has stunk, and he has had to throw short and quick to assure pressure doesn’t become an issue. That remains an issue, but there were signs of hope in Saturday’s 20-10 win over South Carolina. Thanks in part to a 56-yard burst from Ju’Juan Johnson, LSU rushed for 166 yards, and Nussmeier was able to complete 20 of 33 passes for 254 yards with no sacks. He did throw two interceptions, and LSU turned the ball over twice in the red zone, which allowed the Gamecocks to hang around. But the defense was excellent once again, and the problematic offense appeared to make progress. — Connelly


Previous ranking: 6

The Sooners’ smooth start to the 2025 season struck a pothole in a 23-6 loss to Red River rivals Texas at the Cotton Bowl in Week 7. Away from the struggles of quarterback John Mateer in his return from a hand injury and an uncharacteristically leaky defense, Oklahoma’s 106th-ranked run game was the thorn in the Sooners’ side for yet another week, and it remains the biggest threat to the program’s playoff aspirations in 2025. Oklahoma gained just 48 yards from 30 attempts (1.6 yards per carry) on Saturday, cycling between running backs Tory Blaylock, Xavier Robinson and Jaydn Ott to no avail. Without a meaningful run game, the Sooners’ offense has become a worryingly one-dimensional problem not even Mateer’s typically outstanding playmaking can overcome. It’s an issue that will surely trip Oklahoma up across the back half of the regular season, just as it did against Texas. — Eli Lederman


Previous ranking: 16

The Cougars trailed by 10 at Arizona with less than five minutes to play before finding a way to send the game to overtime, where they won, 33-27. The win kept their undefeated season alive ahead of this week’s Holy War game against Utah. Now comes the hard part. BYU’s schedule is much more difficult in the second half of the season. It got quarterback Bear Bachmeier the experience he needed but it’s concerning how much the Cougars relied on his legs against Arizona (22 carries, 89 yards). They need to be able to throw it more effectively for the winning streak to continue. — Kyle Bonagura


Previous ranking: 14

Mizzou fought hard, tackled well and made life as difficult as possible for Alabama in Columbia on Saturday, but Eli Drinkwitz’s Tigers still fell 27-24 because, well, they couldn’t pass. Beau Pribula went just 16-for-28 passing for 167 yards, two touchdowns and two interceptions; even with Ahmad Hardy and Jamal Roberts combining to average 6.0 yards per carry. After an early touchdown, the Tigers scored just 10 points over a 55-minute period before nearly pulling off a late comeback. With plenty of other excellent defenses coming up on the schedule — including Auburn’s next week — the Tigers can’t afford to become one-dimensional if they want to remain in the playoff race. — Connelly


Previous ranking: 17

Notre Dame dominated NC State, 36-7, behind another stellar performance from QB CJ Carr. More impressively is that a defense, lambasted after an 0-2 start for struggles, particularly in the secondary, dominated, picking off CJ Bailey three times in the win. The ugly start to the season seems like it’s fully in the rearview mirror, but those two early losses mean Notre Dame will continue to walk a tightrope in hopes of a playoff berth, and Week 8 could be the moment the Irish tumble to the ground. USC awaits after a big win over Michigan, with a date in South Bend likely to be the defining moment of Notre Dame’s season. — Hale


Previous ranking: NR

After an impressive 31-13 win over No. 15 Michigan Saturday, the Trojans’ biggest obstacle may be something that they can’t go back and change: their loss to Illinois two weeks ago in a game that was seemingly in their hands before they let it slip away. The reason that loss may linger for Lincoln Riley’s team is the fact that the rest of its schedule is daunting to say the least. USC heads to Notre Dame next before heading to face Nebraska in another tough road environment, then has to deal with pesky teams like Northwestern and Iowa at home. The finishing stretch features a dangerous road trip to play Oregon before getting a suddenly-feisty UCLA team at home. Every game in that stretch is its own tricky obstacle and the Trojans have yet to prove they can play consistent elite football, especially on the road. With their talent, the Trojans are plenty capable. The question is whether they will be able to turn that into results. — Uggetti


Previous ranking: 25

For the first time this fall, Texas finally looked the part of the preseason No. 1 and the national title contender the Longhorns were expected to be in August. With physical line play, a productive run game and error-free football from quarterback Arch Manning, Texas controlled the final 35 minutes at the Cotton Bowl and smoothly dispatched Oklahoma in a 23-6 win that breathed life back into its playoff hopes this fall. The challenge now for the Longhorns will be maintaining that level over the back half of the season with a consistency they simply haven’t shown in 2025. If Steve Sarkisian & Co. can replicate Saturday’s performance outside of a rivalry game when their backs are against the wall, Texas has a shot to claw back into the CFP hunt with only three ranked matchups remaining on the schedule. — Lederman


Previous ranking: 19

The Hoos were off in Week 7, which gave Tony Elliott & Co. a chance to take stock of all that has transpired. After a deflating Week 2 loss to NC State in what was considered a nonconference game, Virginia has roared back to life behind a stellar running game and the heroics of QB Chandler Morris. It has won four straight, including back-to-back overtime wins against Florida State and Louisville Cardinals. The remaining schedule is accommodating — Washington State, UNC and Cal are up next — but the Cavaliers would feel better if the next few W’s don’t require as much stress as the past two. — Hale


Previous ranking: 20

The Commodores got a well-timed bye week following their 30-14 loss at Alabama, giving them a chance to get healthy and dig into how they can fine-tune from their first loss of the year. The defining four-game stretch of their schedule comes next against LSU, Missouri, Texas and Auburn, and they’re getting three of those four at home. Clark Lea’s squad has proven it can compete with anyone in its conference. Now it takes great precision and poise to pull off these upsets. Quarterback Diego Pavia was excellent through his first five starts but has eight turnover-worthy plays this season, according to Pro Football Focus, after producing just five through 13 games in 2024. — Max Olson


Previous ranking: NR

The Bulls cleared one of their few remaining hurdles and secured another résumé-building victory in a 27-point win on the road against previously unbeaten North Texas Friday night. South Florida has now committed 13 turnovers this fall, including three across a messy first quarter against the Mean Green, more than all but four other FBS offenses entering play Saturday. But those turnover troubles haven’t kept the Bulls from reaching the back half of the regular season as one of the Group of 5’s leading CFP contenders. The biggest obstacle standing in the way of USF’s playoff hopes? A Week 9 trip to Memphis on Oct. 25. If the Bulls can land a ranked road win over the Tigers later this month, they’ll reach November with pole position in the American title race, and in turn, a clear path to the first-ever CFP appearance in school history. — Lederman


Previous ranking: 21

The 6-0 Tigers had the week off following their 45-7 rout of Tulsa, which gave them a chance to start working ahead on UAB, as well as their much-anticipated Oct. 25 showdown with South Florida, a game with potentially massive College Football Playoff implications. Coach Ryan Silverfield said he’ll harp on ball security and how important it is that his team take care of the football over the second half of the season. Quarterback Brendon Lewis has been responsible for six of the Tigers’ seven turnovers on the year, and they’ve been fortunate to only lose two of their six fumbles so far. Memphis’ defense has been able to get stops in four of these sudden change situations, but this squad will be in trouble if it’s not careful against a USF team that converted five takeaways into 21 points to rout North Texas. — Olson


Previous ranking: NR

The Utes dazzled in a 32-point win over then-No. 21 Arizona State, their third-largest win over a ranked opponent in school history, led by Devon Dampier‘s three rushing TDs and 120 yards on the ground to go with 104 passing yards. The Utes ended a five-game home losing streak to conference opponents, a shocking stat, but coach Kyle Whittingham said that’s over now. The next test is the big one: a nationally televised Holy War game against BYU in Provo, following last year’s one-point loss in the rivalry. It’s once again predicted to be close: ESPN’s FPI gives the Cougars a 51% chance to win. — Wilson


Previous ranking: 24

Coach Scott Satterfield and the Bearcats said they would be better before the season, and they have backed it up, even after an agonizing loss to Nebraska in the opener. The Bearcats won their fifth consecutive game Saturday, their longest win streak since 2022, and are 3-0 in Big 12 play for the first time. They have one of the nation’s best offensive lines, quarterback Brendan Sorsby has been fantastic, and their defense has been opportunistic in forcing turnovers, adding their seventh forced fumble against UCF. While the defense took a step in the right direction against UCF, allowing only 11 points, Cincinnati still surrendered 1,480 yards in the three Big 12 games. The Bearcats entered Saturday ranked 121st nationally in pass efficiency defense, an area that must improve with upcoming games against Baylor, Utah and BYU. — Rittenberg


Previous ranking: NR

At the halfway point of the season, Nebraska has done enough to get the collective hopes of its fanbase in a rare optimistic position. ESPN’s Football Power Index projects the Cornhuskers’ most likely finish to be 9-3, which would be the program’s best finish since 2016. But the second half of the schedule is full of land mines: There are no easy outs the rest of the way. QB Dylan Raiola has had some incredible moments but his three interceptions against Maryland on Saturday are a bit concerning. — Bonagura

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Got a pair of these? There’s more to them than meets the eye – and it may mean global trade war

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Got a pair of these? There's more to them than meets the eye - and it may mean global trade war

For most of human history, no one paid all that much attention to the 17 rare earth elements.

An obscure suite of elements that sit in their own corner of the periodic table, they were mostly renowned among chemists and geologists for being tricky and fiddly – incredibly hard to refine, but with chemical facets that made them, well… interesting.

Not so much for a single thing they did by themselves, but for what they did in conjunction with other elements.

Added to alloys, rare earths can make them stronger, more ductile, more heat-resistant, and so on. Think of them as a sort of metallic condiment: a seasoning you add to other substances to make them stronger, harder, better.

A worker prepares to pour the rare earth metal Lanthanum into a mould in a workshop in Inner Mongolia. File pic: Reuters
Image:
A worker prepares to pour the rare earth metal Lanthanum into a mould in a workshop in Inner Mongolia. File pic: Reuters

The best example is probably neodymium. On its own, there’s nothing especially spectacular about this rare earth element. But add it to iron and boron, and you end up with the strongest magnets in the world. Neodymium iron boron magnets are everywhere.

If you have a pair of headphones or earbuds, the speakers inside them (“drivers” is the technical term) are driven by these rare earth magnets.

If you have a pair of Apple AirPods, those magnets aren’t just in the speakers; they’re what’s responsible for the satisfying “click” when the case snaps shut.

One of the many everyday products that rely on rare earth minerals. Pic: Reuters
Image:
One of the many everyday products that rely on rare earth minerals. Pic: Reuters

Rare earth magnets are in your car: in the little motors that raise and lower the windows, inside the functioning of the airbag and the seat adjustment mechanism.

And not just the little things. Most electric vehicles use rare-earth magnets in their motors, enabling them to accelerate more efficiently than the old all-copper ones.

Pic: iStock
Image:
Pic: iStock

More sensitively, from the perspective of Western governments, in the military, there are tonnes of rare earths to be found in submarines, in fighter jets, in tanks and frigates. Much of this is in the form of magnets, but some is in the form of specialised alloys.

So, for instance, there is no making a modern jet engine without yttrium and zirconium, which, together, help those metallic fan blades withstand the extraordinary temperatures inside the engine. Without rare earths, the blades would simply melt.

Miners are seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China. File pic: Reuters
Image:
Miners are seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China. File pic: Reuters

Yet the amount of this stuff we mine from the ground each year is surprisingly small.

According to Rob West of Thunder Said Energy, the total size of the rare earth market is roughly the same as the North American avocado market. But, says West, those numbers underplay its profound importance.

“Buyers would likely pay over 10-100x more for small but essential quantities of rare earths, if supplies were ever disrupted,” he says.

“You cannot make long-distance fibre cables without erbium. You cannot make a gas turbine or jet engine without yttrium.”

China’s dominance

In short, these things matter. And that brings us to the politics.

Right now, about 70% of the world’s rare earth elements are mined in China.

Roughly 90% of the finished products (in other words, those magnets) are made in China. China is dominant in this field in an extraordinary way.

This is not, it’s worth saying, for geological reasons.

Contrary to what the name suggests, rare earth elements aren’t all that rare. Pull a chunk of soil out of the ground and there will be trace amounts of most of them in there.

True: finding concentrated ores is a bit harder, but even here, it’s not as if they are all in China.

There are plenty of rich rare earth ores in Brazil, India, Australia, and even the US (indeed, the Mountain Pass mine in California is where rare earth mining really began in earnest).

Low cost of Chinese rare earths

The main explanation for Chinese dominance is that China has simply become very good at extracting lots of rare earths at relatively low cost.

According to figures from Benchmark Mineral Intelligence, the prevailing cost of Chinese rare earths is at least three times lower than the cost of similar minerals refined in Europe (to the extent that such things are available).

At this point, perhaps you’re wondering how China has managed to do it – to dominate global production at such low prices.

Part of the explanation, says West, probably comes down to “transfer pricing” – in other words, China being China, refiners and producers are probably able to buy raw materials at below market prices.

Another part of the explanation is that refining rare earth ores is phenomenally energy and carbon-intensive.

Most European and American firms have pulled out of the sector because it is hideously dirty.

A man works at the site of a rare earth metals mine at Nancheng county, Jiangxi province, China. File pic: Reuters
Image:
A man works at the site of a rare earth metals mine at Nancheng county, Jiangxi province, China. File pic: Reuters

Such qualms are less of an issue in China, especially since most of their mines, including the biggest of all, Bayan Obo in Inner Mongolia, are hundreds if not thousands of miles from the nearest city.

Energy costs are less of a constraint in a country whose grid is still built mostly on a foundation of cheap thermal coal.

Add it all up, and you end up with the situation we have today: where the vast majority of the world’s rare earths, that go into all our devices, come from dirty mines in China, produced at such a low cost that device manufacturers are happy to put them anywhere.

Anyway, that brings us to the politics.

Global trade war flaring up again

In recent months and years, China has periodically introduced controls on rare earth exports.

Last week, it announced the most serious rule change yet, essentially insisting that anyone using Chinese rare earths would have to apply for a licence from them.

It has been seen, in Washington at least, as a declaration of economic war, and, in response, Donald Trump has announced a fresh set of tariffs on China.

In short, the global trade war seems to be flaring up all over again.

Pic: iStock
Image:
Pic: iStock

Where this ends up is anyone’s guess. Tim Worstall, a former scandium expert who has been in and out of the rare earths sector for decades, suspects China might have overplayed its hand.

“The end result here is that there can be two outcomes,” he says.

“A: The entire world’s usage of rare earths is mapped out in detail, end uses, end users, quantities, and times for the Chinese state and depends upon their bureaucracy to administer.

“B: The plentiful rare earths of elsewhere are dug up, and the supply chain is rebuilt outside China.

“My insistence is that B is going to be the outcome, and it’ll be done, intervention or no.”

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In practice, the new rules may simply represent an element in China’s trade negotiations with the US.

So it’s hard to know whether they, or for that matter America’s 100% extra tariffs, will ever really bite.

Either way, it’s yet more evidence of the rocky road the global economy remains on.

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