China’s rare earth dominance raises alarm over global supply vulnerabilities

China holds the largest share of known rare earth reserves globally, estimated at around 44 million tonnes, according to data aligned with the U.S. Geological Survey’s Mineral Commodity Summaries 2025.

Brazil follows at a distance with roughly 21 million tonnes, while India, Australia and Russia each hold significantly smaller but strategically important reserves.

Rare earth elements, which are a group of 17 minerals including neodymium, dysprosium and terbium, are indispensable in high-performance magnets, wind turbines, electric vehicles and advanced electronics.

The USGS notes that global demand continues to rise sharply, driven by clean energy technologies and defence applications, increasing the strategic importance of stable supply chains.

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China’s dominance is not limited to reserves. The country also accounts for the majority of global rare earth mining and processing capacity, giving it outsized influence over pricing and availability.

Beyond China and Brazil, several countries are positioning themselves as alternative suppliers.

India holds approximately 6.9 million tonnes of reserves, while Australia, already a key producer, has around 5.7 million tonnes. Russia and Vietnam each account for roughly 3–4 million tonnes, according to USGS estimates.

The United States, with about 1.9 million tonnes, remains comparatively limited in reserves but is investing heavily in domestic production and processing to reduce reliance on imports.

Greenland has also drawn attention in recent years, with around 1.5 million tonnes of estimated reserves, though development remains politically and environmentally sensitive.

In Africa, Tanzania and South Africa hold smaller but notable deposits, underscoring the continent’s growing relevance in critical minerals discussions.

The concentration of rare earth resources, and even more so, processing capacity, however, has raised concerns among Western governments.

The USGS highlights that supply disruptions, whether due to geopolitical tensions, export controls or environmental regulations, could have significant downstream effects on industries ranging from renewable energy to defence manufacturing.

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