The China Rare Earth Group's breakthrough in mine exploration in Liangshan Yi autonomous prefecture, Sichuan province, where they have stumbled upon an additional 4.96 million tons of rare earth reserves as officially announced on Sept 15, will have a huge impact.

Rare earth is a collective term for 17 elements including scandium, yttrium, and the lanthanide series, all of which play key roles in various industrial fields such as aerospace, specialty materials, metallurgy and energy, but are very scarce. That's also why it's considered a strategic mineral resource for China, which accounts for the largest reserves.

According to data from the United States Geological Survey, China had a reserve of 44 million tons of rare earths, almost twice that of runner-up Vietnam's 22 million tons and far surpassing the United States' 1.8 million tons. Now the additional 4.96 million tons that they found in Sichuan is in itself more than twice that of the US' total reserves, and will further consolidate China's leading role in the global rare earth industry.

But having a large reserve alone doesn't naturally make one dominate the global market. Their processing techniques, namely the ability to turn mined rare earth materials into industrial products, are no less significant. However, China is not an equal leader on that front. Many developed nations import rare earth minerals from China, make their own products and sell them in the international market.

Which in turn requires China to further sharpen its relevant technologies to secure a leading role in not only global reserves but also the global rare earths finished products market. It's also notable that rare earth mining involves harm done to the environment, as a result of which China bears high environmental cost for the developed countries by exporting too much rare earth materials. Oct 1 will see the nation's first comprehensive rare earth regulation coming into effect, which has made clear that domestic rare earth resources will be exploited in a protective way.

The known rare earth resources in Liangshan, estimated at 2.78 million tons according to an academic conference in 2020, are primarily light rare earths, classified as bastnaesite rare earth deposits, with associated minerals such as fluorite and barite. If the additional 4.96 million tons are of similar composition, which is highly likely, that will be an added reason for China to boost its technology upgrading so as to make better use of its resources.