China Controls 70% of Global Rare Earth Production, Impacting US Defense and Tech Industries
China dominates the global rare earth market, controlling 70% of production, 85% of refining, and 98% of processing capacities, with reserves totaling 44 million metric tons. A RAND Corporation study warns that a 90-day disruption in supplies could halt production for 78% of US defense contractors, as the US faces significant challenges in establishing a self-sufficient supply chain, which could take over a decade and $10-$15 billion to achieve. China's strategic investment in its rare earth industry further solidifies its critical role in global tech and defense sectors.
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China currently controls approximately 70% of global rare earth mining production, 85% of refining, and 98% of processing capacities. The country has the highest reserve of rare earth elements, totaling 44 million metric tons.
In 2025, during a trade war, China imposed export controls on rare earths, highlighting their strategic importance to the US economy. A RAND Corporation study indicated that a 90-day disruption in rare earth supplies could halt production for 78% of US defense contractors.
Despite US efforts to re-establish its rare earth supply chain, estimates suggest it may take over a decade and $10-$15 billion to achieve self-sufficiency. China has invested significantly in its rare earth industry, developing an ecosystem that supports production, refining, and processing, solidifying its dominance in this critical sector.
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