How China’s Rare Earth Metal Dominance Shapes Global Technology and Security
Global rare earth metals production has surged from 75.7 kilotonnes in 1995 to 353.7 kilotonnes in 2023, driven by growing demand for high-tech applications. China remains the dominant producer, responsible for over two-thirds of global output and a near-monopoly on processing, covering 90% of all rare earth metals and almost 100% of heavy rare earth metals. In December 2023, China banned the export of rare earth extraction and processing technology, reinforcing its control over the global supply chain. Meanwhile, the U.S. has been ramping up domestic production and processing efforts, awarding contracts to companies like Lynas Earths and MP Materials to reduce reliance on China.
My Take
Rare earth metals are the backbone of high-tech, essential for smartphones, electric vehicles, advanced defense systems, and many more critical high-tech products. China’s dominance in rare earth metals underscores the urgent need for a diversified supply chain in critical technologies. The recent ban on exporting extraction technology is calculated to protect China’s market power, escalating concerns over global dependencies. While a positive step toward risk mitigation, the U.S. response is too little too late—China’s control of rare earths is payback for U.S. controls on advanced semiconductor technology. As tension between the U.S. and China grows, expect deeper fractures and disruptions across global supply chains.
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Link to article:
https://www.visualcapitalist.com/visualizing-global-rare-earth-metals-production-1995-2023/
Credit: Visual Capitalist