China owns 90% of rare earths

Controlling 90% of the world's supply of materials essential for every major technology, from EVs to fighter jets, creates trade leverage.

China's Ministry of Commerce expanded its rare earth export restrictions on 9 October 2025, banning defense exports, limiting semiconductor access, and requiring permission for any cooperation involving rare earths between China and overseas entities.

China accounts for over 90% of the world's rare earth production. These 17 elements are vital for electric vehicles, aircraft engines, and military radars. Beijing has the power to approve or deny access to materials that determine which countries can manufacture advanced technology.

Will Western countries accelerate domestic rare earth processing investments after this tightening?

Will China's case-by-case semiconductor approvals create leverage in ongoing chip export disputes with the US?

[Analysis] Karve International on China's rare earth processing advantages — China's rare earth industry produces high-quality products at better prices than competitors, with concentrated supply chains creating efficiency and reliability that make it "exceedingly difficult for western companies to compete."

The announcement came one day after US lawmakers called for broader chip export bans to China. It's amusing how monopolies recall their leverage when you threaten their customers.

Monopolies reveal their power when challenged.

Within 24 hours of US lawmakers demanding broader bans on chipmaking equipment in China, Beijing reminded everyone who controls 90% of the world's processed rare earths.

China's supply dominance is clear.

Every EV, every fighter jet, every advanced semiconductor depends on rare earth magnets that only China can process at scale.

Every Western technology strategy requires Chinese permission.

Western governments pursue tough-on-China rhetoric. Their manufacturers pay the price when Beijing responds by restricting access to materials that determine whether factories operate.

Sanctioning your supplier creates supply risk.

Pro: China's rare earth restrictions respond to US chip sanctions. Countries that restrict access to technology face similar restrictions in return.

Con: One country controlling 90% of materials essential for defense and technology represents strategic negligence. Accepting this monopoly as permanent instead of investing in alternatives guarantees ongoing leverage problems.

Our read: China spent decades building dominance in rare earth processing. Western countries allowed their domestic capacity to decline for cost savings. Objecting to monopoly leverage after outsourcing critical materials comes too late.

[Primary] Global Times: China Ministry of Commerce announces rare earth technology export controls, 9 Oct 2025

Why it shifts the read: The October 9 announcement expands beyond the April controls on rare earth elements themselves. China now restricts exports of processing technology, manufacturing equipment, and overseas cooperation on rare earth projects. China is controlling the materials and preventing other countries from building their own processing capacity. This is gatekeeping technology development.

"90% supply. 17 elements. One gatekeeper." — China rare earth monopoly, 2025

Join your team of caffeinated skeptics. ☕

Opinionated world news that respects your time.

One bold take, the best counter, and the receipt(s) that prove it (all in six minutes).

Before we wrap up today…

Does crypto/Web3 intrigue you?

Is worrying about losing money or getting scammed stopping you from investing?

This course is for you!

Click to share (2 referrals get you free access to your very own crypto mastery email course).

Everything you need to unlock crypto in 5 days (for beginners).

You can read yesterday’s newsletter on the presidential grounds becoming pay-per-view here.

For the love of coffee, see you tomorrow!

Enjoy your Thursday, keep it caffeinated.

Thanks for reading!

Be sure to get your daily curse and coffee fix by hitting that subscribe button.