TL;DR : China produces nearly 70% of the world’s rare earth metals and processes 90%. In 2025, it quietly limited exports and centralized control, using quotas and trade restrictions to strengthen its position amid global tensions.
Key Developments
- China controls 69-70% of global rare earth mine production in 2024-2025, and processes about 90% of the world’s supply.
- In July 2025, China quietly issued its first rare earth quotas for the year without public announcement; companies were told not to disclose figures for "security reasons," according to unnamed sources.
- Only two state-owned companies, China Rare Earth Group and China Northern Rare Earth Group, were given quotas in 2024 and 2025, down from six in previous years.
- Export restrictions were tightened in April 2025, when China added seven heavy rare earth elements and related magnets to its export control list in response to U.S. tariffs.
- As a result, U.S. companies like Ford paused production due to material shortages.
- 2024 production data from the U.S. Geological Survey:
- Global rare earth mine production: 390,000 metric tons
- China: 270,000 tons (69%)
- U.S.: 43,000 tons (11%)
- Myanmar: 38,000 tons (10%)
- Australia: 18,000 tons (5%)
- China’s rare earth industry market value in 2025: $0.93 billion, projected to reach $2.87 billion by 2034.
Global Reactions and Diversification Efforts
- U.S.: MP Materials increased Mountain Pass mine output to 43,000 tons; new Texas facilities are planned. The Pentagon aims to cut China’s processing dominance by 2030.
- Australia: Lynas Rare Earths became the first non-Chinese firm to produce dysprosium oxide commercially in May 2025.
- Other countries: Saudi Arabia, Canada, and the EU are expanding mining efforts. A U.S.-Saudi agreement targets full rare earth supply chains by 2028.
Quote
“China is increasingly sensitive about rare earths and its control over the supply,” - Reuters report, July 18, 2025.