A significant policy shift from Beijing has sent ripples across the globe, highlighting China’s dominant role in the rare earth supply chain. New export curbs, announced by China’s Ministry of Commerce, are set to complicate the acquisition of critical minerals essential for modern technology. The regulations introduce a more rigorous approval process for exporting goods containing rare earths, impacting industries that depend on elements like neodymium, dysprosium, and terbium for high-performance magnets, advanced electronics, and green technologies.
China’s near-monopoly on rare earth processing, despite not holding the largest reserves, positions it as a crucial player in the global economy. The latest export controls have already triggered price increases for key rare earth compounds, forcing countries like the US and Japan to reassess their supply chain vulnerabilities. India is emerging as a potential player, boasting significant reserves and actively engaging in international collaborations. Strategic pacts are being formed to develop resilient supply chains, focusing on joint exploration, technology sharing, and exploring new frontiers like deep-sea mineral extraction to mitigate risks associated with concentrated supply.