The weaponisation of rare earth minerals: Who controls the world’s tech future?
Rare earth minerals critical for everything from electric vehicles and smartphones to military hardware have become a powerful geopolitical tool.
As global demand for advanced technology and clean energy rises, nations are grappling with the strategic implications of rare-earth supply chains.
China controls a staggering 69–70% of global rare-earth output and over 90% of processing capacity, a dominance that extends beyond mining to full-scale vertical integration. This encompasses separation, refining, and even manufacturing magnets and alloys essential for modern technology.
In 2010, China paused rare-earth exports to Japan over a territorial dispute, triggering a 50% spike in global prices almost overnight.
Countries worldwide recognise the risks. Germany and Canada recently signed an agreement to cooperate on supply chains for lithium, gallium, germanium, and rare earth elements, aiming to reduce reliance on a single supplier.
Meanwhile, the U.S. is stepping up: Critical Metals, the development-stage mining company, secured a 10-year contract to supply rare earth concentrates from Greenland to a new U.S. processing facility, backed by the Department of Defence.
Australia is also pushing its advantage. According to the local news agency, The Australian, the country is planning a $1.2 billion strategic reserve of critical minerals and launching processing investments through its Critical Minerals Facility.
The tech warfare between China and the U.S.
Rare earths are more than just industrial inputs; they are strategic leverage. China’s export controls on key elements and technologies have repeatedly shaken global industries. Recently, it introduced sweeping export regulations on minerals, magnets, and processing equipment, heightening concerns in markets that depend heavily on these materials.(turn0news19)
U.S. President Trump responded with a warning of 200% tariffs on China if it restricts rare-earth magnet exports to the U.S.
India is also responding to its National Critical Minerals Mission and the broader “Make in India” initiative, which aims to ramp up domestic exploration and production. Recent announcements include plans for extensive exploration missions, especially in Gujarat, to secure rare earths for the auto and tech sectors.
Rare earths are foundational to the modern world’s energy transition and security. China’s dominance makes critical technologies and industries vulnerable to supply shocks and geopolitical manoeuvres. Countries are responding by diversifying supply chains, investing in homegrown mining and refining capabilities, and forming strategic partnerships.
Will global efforts dilute China's stranglehold? That remains to be seen, but one thing is clear: whoever controls rare earths may well control the technological future.
This story is written and edited by the Global South World team, you can contact us here.
