China and Iran Collaborate on Rare Earth Exploration
The National Natural Science Foundation of China (NSFC) announced on Monday that it will be cooperating with Iran on the exploration and processing of rare earth elements through a series of workshops, mainly financed by China.
For each workshop, the NSFC will provide around $4,200 in funding, while the National Science Foundation of Iran will help facilitate travel and accommodation for Chinese researchers coming to Iran, and the same for Iranian researchers visiting China.
According to the South China Morning Post, this collaboration comes at a “particularly sensitive moment,” particularly given the ongoing tensions between the United States and Iran. It’s noted that this timing seems strategic.
Meanwhile, Xi Jinping is scheduled to visit the U.S. in September to discuss trade with President Trump. However, this meeting could be at risk due to mutual sanctions being imposed by both countries. Trump is likely to have concerns about China’s decision to forge closer ties with Iran during this challenging period.
China’s involvement in this sector is seen as a significant diplomatic move, especially since it already holds a dominant position in the rare earth industry. The country has the largest known reserves of these resources and is a leading producer and refiner.
While central Iran is believed to contain valuable rare earth deposits, there hasn’t been much technological development for verifying or exploiting these resources. What we do know is that various iron and phosphate formations exist there.
In light of the Trump administration’s efforts to reduce China’s dominance in the rare earth market, Beijing might be looking at this partnership as a way to boost mineral production and maintain its position as the world’s top supplier.
Conversely, the American Enterprise Institute pointed out that Iran has expressed interest in China’s assistance to help develop its rare earth industry, as the country currently spends millions on importing these minerals for electronics and weaponry.
As international sanctions tighten around Iran, it’s understandable that Iranian authorities may worry about the potential impact on rare earth imports, which could affect their refining capabilities and domestic electronics production.
Additionally, the Center for Strategic and International Studies speculated that Iran might be aiming to utilize its mineral wealth to reintegrate into the global economy once hostilities cease. Besides rare earths, Iran has substantial copper reserves that could be attractive to foreign buyers if sanctions were lifted.
This workshop initiative appears somewhat limited, almost exploratory in nature. China is likely trying to gauge the actual extent of Iran’s rare earth deposits and the costs involved in extraction before making any substantial commitments. There’s a chance that China could find Iran’s reserves insufficient to warrant a profitable investment.
