INDUSTRY VOICES StgTestArticle How did China come to dominate the rare-earth trade? Production jumped ninefold in three decades

China’s rare-earth elements (REE) trade has risen ninefold over the past three decades, and its control over global supply is now unmatched in modern history, leaving countries such as the US and India completely reliant on Chinese supplies.India’s capacity has grown by a mere 16 percent in the same period, according to a Moneycontrol analysis of USGS data.

Through years of calculated efforts, China has secured an iron grip on rare earth magnets. It channelled state support and ensured an abundant supply of raw materials from around the world, helping Chinese companies undercut global rivals, decimating industries in the US and other nations by 2010. With competition largely folding, Beijing now wields significant leverage on supply chains.

So, when China curbed exports of rare-earth magnets earlier this year, the ripple effects were felt worldwide across the automotive, electronics, and defence industries. Citing national security concerns, Beijing imposed export controls on “dual-use” materials with potential military applications and required exporters to provide detailed end-use documentation and, in some cases, third-party testing to verify the magnets’ composition.