China's Rare-Earth Magnet Dominance Threatens Humanoid Robot Supply Chain

The market for humanoid robots is expanding rapidly as advances in artificial intelligence, machine learning, and sensor technology enable machines that can work alongside humans in manufacturing, healthcare, logistics and other sectors. Each robot requires roughly 3.5–4 kg of rare‑earth magnets, more than double the amount used in an electric‑vehicle motor, making high‑performance magnets a critical component for the next wave of physical AI.

China controls the majority of the rare‑earth magnet value chain—about 59 % of mining, 91 % of refining and 94 % of magnet manufacturing. Analysts note that this concentration creates a strategic chokepoint for the emerging humanoid‑robot industry, with Beijing having already used rare‑earth export controls as a geopolitical lever. Diversification of supply sources and increased recycling are seen as necessary to mitigate the risk, while non‑Chinese magnet producers may benefit from growing demand for secure supply chains.