Rare earths remain at the centre of US-China strategic and economic discussions, as highlighted by the recent meeting between the American and Chinese presidents.
While the US administration indicated China’s willingness to address concerns over rare earths shortages, which remain critical for global manufacturing, defence, semiconductors, and energy transition technologies, Beijing’s restrictions and dominance on the critical minerals remain a source of risks for global supply chains.
China continues to maintain a near chokehold on the rare earths market, creating a significant strategic vulnerability for Western economies.
Through export controls, Beijing has the ability to disrupt industries ranging from advanced defence systems to electric vehicles, wind turbines, and semiconductor production. The risks are particularly acute in heavy rare earths, essential for high-performance magnets and advanced military technologies, where China’s dominance remains overwhelming. As such, any prolonged disruption could directly affect the ability of several countries to manufacture critical defence equipment and maintain deterrence capabilities during a period of elevated geopolitical tensions, as well as secure production in other strategic industries.
Although the United States and its allies are accelerating efforts to diversify supply chains and expand mining, refining, and processing capacity, closing the gap with Beijing will likely take years. Production and refining capabilities outside China remain limited, making new projects such as Tanbreez in Greenland strategically important at a time when trade and geopolitical tensions are increasing pressure on critical supply chains and strategic stockpiles, adding further urgency to securing reliable access to critical minerals.
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