Reuters World News China's dominance in critical minerals
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Jun 7, 2025 Ernest Scheyder, a Reuters journalist focusing on the green energy transition and critical minerals, delves into China's monopoly over these vital resources. He discusses the drastic impact of China's export controls on global supply chains, particularly in the automotive and aerospace sectors. The conversation covers the U.S.'s struggle to catch up and the geopolitical tensions arising from trade relations with China. Scheyder highlights the urgent need for diplomatic solutions as industries grapple with supply chain challenges.
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China's Strategic Mineral Dominance
- Critical minerals are essential for modern electronics, military, and the electrified economy.
- The U.S. lacks capacity in mining and processing, while China invested heavily to dominate the supply chain.
China Controls Rare Earth Processing
- China controls 90% of global rare earth processing due to lax environmental regulations.
- Their dominance grew through industrial policy focus and earlier export bans showing power leverage.
Security Drives Export Controls
- China's export restrictions are driven by national security and defense supply chain protection.
- Much of China's rare earth industry know-how originated from US-trained chemists decades ago.