What strategic advantage does China hold in the rare earths market?

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China's Dominance in the Global Rare Earths Market

China holds a significant strategic advantage in the global rare earths market, controlling over 85 per cent of the world's supply. This dominance stems from its extensive mining and processing capabilities, positioning rare earths as a critical bargaining chip in international relations and a vital component for the global net-zero transition and military applications.
Control Over Global Supply

China's firm grip on the rare earths sector is substantial, with the nation accounting for more than 85 per cent of the worldwide supply. This level of control allows China to influence global markets and supply chains, making it a pivotal player in industries reliant on these critical minerals.
Indispensable for Net-Zero and Military Applications

Rare earth elements are now considered indispensable for the global push towards net-zero emissions, playing a crucial role beyond their use in electric vehicles. Their strategic applications extend to the military sector, underscoring their importance in advanced technologies and national security.
A Powerful Bargaining Chip

The extensive control China wields over the rare earth supply chain translates into a powerful bargaining chip in geopolitical and economic negotiations. This leverage allows China to influence trade dynamics and international policy, given the indispensable nature of rare earths for technological advancement and sustainable development initiatives.

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What strategic advantage does China hold in the rare earths market?

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