China Tightens Grip on Rare Earths, Putting Global Tech on Edge
(MENAFN) Tensions in the ongoing U.S.-China trade conflict have intensified this month, as China introduced broad new export limits on rare earth elements — critical minerals used in products ranging from smartphones and renewable energy systems to high-tech military hardware.
Often referred to as the “seeds of technology,” these minerals are foundational to modern devices and systems. They make possible the compact design of electronics, advancements in clean energy and healthcare technologies, and are essential to telecommunications, transport infrastructure, and national defense.
Control over these elements has become central in the global contest for technological supremacy — and China currently has a commanding advantage.
Data from the U.S. Geological Survey in 2024 shows that China is responsible for 69% of global rare earth production and holds close to 50% of the world’s reserves. The country also controls 90% of the refining capacity — the key stage that transforms extracted ores into usable components.
In response to this strategic vulnerability, the U.S. is accelerating efforts to diversify its supply. With funding from the Inflation Reduction Act and the CHIPS Act, domestic mining initiatives are gaining traction. Companies such as MP Materials and Lynas Rare Earths are receiving federal support to construct the first rare earth separation and processing plants in the U.S.
Still, analysts caution that challenging China’s dominance will demand more than simply opening new mines.
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