Shares of Chinese rare earth miners were sold off heavily on Thursday, with shares falling.

The picture shows rare earth samples.

(Reuters)

[Financial Channel/Comprehensive Report] American electric car manufacturer Tesla (Tesla) unexpectedly announced that it will completely switch to rare earth-free permanent magnet motors. After the news came out, the stocks of Chinese rare earth miners were heavily sold , the stock price fell.

"Bloomberg" reported that Colin Campbell, Tesla's vice president of power system engineering, said that based on the health and environmental risks caused by the mining of rare earths, Tesla's next-generation electric vehicle drives will use rare earth-free permanent materials. magnetic motor.

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Global rare earth mining and refining is currently dominated by China. With the supply chain problems caused by the epidemic, this overreliance has become a growing specific problem for global companies, while geopolitical tensions in China and some Western countries have also increased. The risk of rare earths being used as bargaining chips.

The rare earth industry saw a short-lived rebound in 2019 and 2020, mainly due to market speculation that China may limit the export of this important metal in the trade war with the United States. Hardware requires the use of rare earths.

Chinese rare earth miners JL Mag Rare-Earth, Jiangsu Huahong Technology, listed on the Shenzhen Stock Exchange, Thursday (3rd) after Tesla announced a switch to rare earth-free permanent magnet motors The intraday average fell 10% at one point.

Rising Nonferrous Metals Share, which is listed on the Shenzhen Stock Exchange, also fell by 9.6% at one point, while China Rare Earth Holdings, which was listed in Hong Kong, fell by nearly 3%, which was twice the decline of the Hang Seng Index. many.

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