HS Code:
The category 'Compounds, inorganic or organic, of rare-earth metals, of yttrium or of scandium, or of mixtures of these metals' (HS Code: 2846) encompasses a range of chemical compounds that include rare-earth elements, yttrium, and scandium. These materials are critical in various high-tech and industrial applications, including electronics, renewable energy technologies (e.g., wind turbines and electric vehicle batteries), catalysts, and advanced ceramics. Rare-earth compounds are essential for manufacturing products like permanent magnets, phosphors for lighting and displays, and components in defense technologies. Due to their unique magnetic, luminescent, and electrochemical properties, these compounds are pivotal in driving innovation across multiple sectors.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 800 million
66.7% of total trade of total trade
Increasing
USD 150 million
12.5% of total trade of total trade
Stable
USD 100 million
8.3% of total trade of total trade
Increasing
USD 80 million
6.7% of total trade of total trade
Increasing
USD 50 million
4.2% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
25% (imposed by certain countries on specific subcategories due to strategic trade policies)
Lowest Rate
0% (under free trade agreements or for developing countries under GSP schemes)
Rising demand for rare-earth compounds in green technologies
Increased trade volumes due to the global push for renewable energy and electric vehicles, driving up prices and investment in mining and processing capacities.
2021-2023
Diversification of supply chains
Countries like the US, Australia, and Canada are investing in domestic production to reduce reliance on China, leading to shifts in trade patterns.
2020-2023
Technological advancements in recycling
Growing focus on recycling rare-earth materials from electronic waste, potentially reducing demand for raw imports in the long term.
2022-2023
China announced stricter export controls on rare-earth compounds citing national security and environmental concerns, requiring exporters to obtain special licenses.
October 2023
Potential supply chain disruptions for countries heavily reliant on Chinese exports, prompting further diversification efforts.
The US government allocated significant funds under the Inflation Reduction Act to develop domestic mining and processing capabilities for rare-earth compounds.
August 2022
Expected to reduce dependency on foreign imports and boost US trade volumes in the medium to long term.
The European Union introduced legislation to secure sustainable access to rare-earth compounds by promoting recycling and partnerships with resource-rich countries.
March 2023
Likely to increase trade with non-Chinese suppliers and influence global pricing dynamics.