TECHCET has released a detailed analysis revealing how China’s tightening control over rare earth elements (REEs) is reshaping global supply chains and creating ripple effects across high-tech industries. China’s rare earth production accounted for nearly 70 percent of global output in 2024, alongside sweeping policy changes aimed at asserting even greater control over the market according to TECHCET’s Critical Materials Report™ on Rare Earths.
With the implementation of recent Rare Earth trade regulations and the introduction of strict export licensing, China has effectively centralized its REE production and integrated downstream operations. These actions have already led to price volatility for critical materials such as dysprosium, neodymium, and cerium, which are essential to electric vehicles, semiconductors, and wind turbines.
China’s dominance is rooted not only in its abundant domestic resources, including the massive Bayan’obo mine in Inner Mongolia, but also in its strategic foreign investments and infrastructure development. State-supported enterprises such as Shenghe Resources have acquired significant stakes in rare earth operations in the United States, Greenland, Tanzania, and Vietnam, extending China’s influence beyond its borders. Recent infrastructure projects, including railway modernization in Tanzania and Vietnam, funded by Chinese institutions, are enhancing the transport of rare earths from foreign mines to processing facilities with Chinese ownership or partnerships. These efforts strengthen China’s ability to maintain control over both supply and processing capacity at a global scale.
In response, global stakeholders are reexamining their dependence on China for these essential materials. Countries such as the United States, Australia, and Canada, along with nations in Africa, are actively developing rare earth projects that could provide alternative sources. However, many of these initiatives still rely on Chinese refining infrastructure. As China continues to consolidate its position, there is growing urgency among governments and manufacturers to invest in domestic processing capabilities, recycling programs, and research and development.
Read this report for detailed analysis and key success factors to level set the rare earth supply/demand balance and assist in business and government strategies needed to address China’s dominance. To acquire TECHCET’s report on the Rare Earths market outlook and supplier landscape, visit: https://techcet.com/product/rare-earths/ or contact us at cmcinfo@techcet.com
