"China accounts for roughly 70% of global rare earth production, but it is the country's dominance in processing that gives Beijing real leverage. With close to 90% of the world's rare earth refining and processing capacity, China effectively controls the flow of materials used in products ranging from electric vehicles and wind turbines to advanced semiconductors and precision‑guided munitions."
"Since the 1980s, China has shelled out billions of dollars in investment and subsidies to secure its dominant position across the supply chain of rare earth metals. 'China has been at this for more than 30 years,' McMullen said."
"The country's dominance of rare earth production made headlines last year after Beijing slapped export controls on several key metals in retaliation to U.S. President Donald Trump's tariffs on China. Beijing imposed restrictions on the sale of elements like samarium, dysprosium and terbium, which are crucial for defense, electric vehicle and semiconductor industries."
China dominates rare earth processing with roughly 90% of global refining and processing capacity, controlling the supply chain for materials essential to electric vehicles, wind turbines, semiconductors, and military applications. Since the 1980s, China invested billions in subsidies to secure this dominant position. Beijing demonstrated this leverage by imposing export controls on key rare earth elements like samarium, dysprosium, and terbium in retaliation for U.S. tariffs, threatening production halts across major industries. The U.S. and allies face a costly race to develop domestic processing capabilities, recognizing the strategic vulnerability of depending on China for these critical materials.
#rare-earth-elements #geopolitical-competition #supply-chain-security #china-dominance #strategic-leverage
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