HS Code:
Rare-earth chlorides, excluding cerium chlorides, fall under the Harmonized System (HS) Code 2846.90. This category includes chlorides of rare-earth elements such as lanthanum, neodymium, praseodymium, and others, which are critical in various high-tech and industrial applications. These compounds are primarily used in the production of catalysts, glass polishing, ceramics, and as precursors for other rare-earth compounds. Due to their specialized applications, the trade of rare-earth chlorides is highly concentrated among a few key players with access to rare-earth mineral deposits and processing capabilities.
Total Trade Volume
Approximately $250 million USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$180 million USD
72% of global trade of total trade
Increasing
$25 million USD
10% of global trade of total trade
Stable
$15 million USD
6% of global trade of total trade
Stable
$10 million USD
4% of global trade of total trade
Increasing
$8 million USD
3% of global trade of total trade
Stable
Average Rate
5.5% ad valorem
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements or WTO commitments)
Growing demand for rare-earth chlorides in green technologies
Increased trade volume driven by applications in wind turbines, electric vehicle batteries, and energy-efficient lighting
2021-2023
Diversification of supply chains
Countries like Australia and the United States are ramping up production to reduce reliance on Chinese exports
2020-2023
Price volatility due to geopolitical tensions
Fluctuations in prices and trade flows due to export restrictions and trade disputes
2019-2022
China announced stricter export controls on rare-earth compounds, including chlorides, to prioritize domestic industries and national security.
October 2022
Potential supply shortages and price increases for importing countries; accelerated efforts to diversify supply chains.
The U.S. government allocated funds under the Inflation Reduction Act to support domestic rare-earth mining and processing facilities.
August 2022
Expected to reduce dependency on imports and stabilize trade volumes over the long term.
Lynas Rare Earths, a major Australian producer, announced the expansion of its processing plant to meet growing global demand.
March 2023
Increased export potential for rare-earth chlorides, providing an alternative to Chinese supply.