Fact Check: "China dominates global rare earth processing, risking Western dependence."
What We Know
China's dominance in the rare earth elements (REE) market is well-documented. As of 2023, China produces approximately 70 kilotons of refined rare earths and controls nearly 90% of the global processing capacity (Understanding China’s Global Rare Earth Power Leverage). This is significant considering that rare earths are critical for various technologies, including smartphones, electric vehicles, and military applications. The country possesses over half of the world's rare earth reserves and extracts around 60% of the global supply (Chinas Rare Earth Limits Shift Global Supply in 2025).
The geopolitical implications of this dominance are profound. In December 2023, China imposed export restrictions on critical minerals, further tightening its grip on the global supply chain (Understanding China’s Global Rare Earth Power Leverage). This has raised concerns among Western nations about their dependence on Chinese rare earths, particularly in strategic sectors like defense and renewable energy (Chinas Rare Earth Limits Shift Global Supply in 2025).
Analysis
The claim that "China dominates global rare earth processing, risking Western dependence" is supported by multiple credible sources. The statistics regarding China's production and processing capabilities are consistent across reports, highlighting its overwhelming market share. For instance, the assertion that China controls nearly 90% of global rare earth processing is corroborated by both the Center for Strategic and International Studies (CSIS) and various industry analyses (Understanding China’s Global Rare Earth Power Leverage, Chinas Rare Earth Limits Shift Global Supply in 2025).
Moreover, the strategic implications of this dominance are underscored by recent actions taken by China, such as the export restrictions that have been implemented in response to rising geopolitical tensions (Understanding China’s Global Rare Earth Power Leverage, It's time for U.S. to treat rare earths as power). These restrictions not only threaten supply chains but also highlight the vulnerabilities faced by Western nations that rely heavily on Chinese rare earths for advanced technologies.
The reliability of the sources used in this analysis is high. Reports from established institutions like CSIS and reputable news outlets such as CNBC provide a well-rounded view of the situation. However, it is essential to note that while these sources present factual data, they may also reflect the geopolitical biases inherent in discussions about China and its economic strategies.
Conclusion
The claim that "China dominates global rare earth processing, risking Western dependence" is True. The evidence clearly shows that China holds a commanding position in both the production and processing of rare earth elements, which are vital for modern technology and defense. This dominance poses significant risks for Western nations, making them vulnerable to supply chain disruptions and geopolitical maneuvers by China.
