The battle for rare earths needed for clean energy

STORY: Rare earths could be the key to a transition to green energy.

The rock from these mines are turned into building blocks for magnets -

that are used in everything from iPhones - to Teslas.

And Beijing - has a dominating hand over them.

Last month China imposed export controls on gallium and germanium -

stoking fears that it could block exports of rare earths next.

So - what would happen then?

Experts say China has a stranglehold on the key group of 17 metals needed for a clean energy transition.

What's more -

it controls almost 90% of global rare earths refining capacity, according to the International Energy Agency.

The world's two biggest rare earths companies outside of China are having a hard time competing.

Australia's Lynas had plans to build a U.S. refinery with a Texas-based partner - but that collapsed, according to sources.

U.S.-based MP had a goal of refining its own rare earth metals in 2020 - but then COVID-19 hit.

If projects continue to struggle, several economies could fail to meet their goal of cutting carbon emissions to net zero 2050 - without Beijing's involvement.

Analysts say crucial innovation is needed to break China's dominance in the sector -

without sacrificing environmental quality.

Tesla in May announced plans to make EV magnets without rare earths -

citing 'environmental and health risks' in the current process.

Several other companies are working on new ways to process rare earths.

But cleaner solutions are still years from production.