Rare earth elements are 17 metals essential for various modern technologies, from vibrating phones and polished screens to steering magnets in cars and exhaust scrubbers. These elements are critical components in numerous consumer electronics and industrial applications.
Despite some rare earth elements being common in the Earth's crust, their separation from raw ore is complex and difficult. This processing challenge means that countries controlling the refinement of these minerals gain significant political influence. China currently dominates this processing sector globally.
China's near-monopoly on rare earth processing extends beyond consumer goods to critical military applications, including the F-35 fighter jets and Virginia-class submarines used by the US military. This reliance creates a strategic vulnerability for other nations.
In 2025, China implemented export controls on rare earth minerals, which it later agreed to suspend until November 10, 2026. This action demonstrated China's ability to use its control over rare earth supply to influence global affairs, potentially slowing or halting a rival's technological and industrial growth.
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China processes the majority of the world's rare earth minerals, which are critical for consumer electronics and military hardware like the F-35 fighter jet. This control gives China significant geopolitical leverage, as demonstrated by its 2025 export controls that were suspended until November 2026.