China Holds Over 90% of Global Rare‑Earth Refining Supply

China has built a near‑total monopoly over the global rare‑earth market. It processes about 90% of the world’s refining capacity and accounts for roughly 70% of production, while controlling around 95% of the manufacture of permanent magnets used in high‑tech and defense equipment.

The dominance stems from decades of state‑directed investment in extraction and especially in the complex, environmentally costly refining stage, which forces even mined ores from other countries to be routed through Chinese facilities. The market for these 17 elements, valued at about €8.5 billion, underpins smartphones, electric vehicles, wind turbines, lasers, batteries and advanced weaponry.

Western governments and industry in the United States and Europe are attempting to reduce reliance, but they currently hold less than 7% of global reserves and lag far behind in refining capability. China’s strategy, supported by subsidies and low‑price processing, continues to give it significant leverage over global technology supply chains.