Kathmandu. China has a monopoly on the global rare earth industry. China controls two-thirds of the mines and more than 90 percent of its refining.
China is using this hegemony as a strategic weapon. Recently, China has reduced rare earth exports to many countries.
China’s rare earth exports to the United States have also fallen significantly. In the first six months of 2026, monthly exports of China’s rare earth magnets to the United States averaged 479 tons. This is the lowest annual monthly average since 2021.
Exports averaged 586 tons between 2022 and 2024. That’s about 22 percent more than the current rate. Rare earth magnets are critical for industries such as electric vehicles, industrial automation, and defense. Therefore, securing their supply is a top priority for U.S. manufacturers. This has compounded America’s difficulties in the Iran war.
In October, US President Donald Trump and Chinese President Xi Jinping reached an agreement. China had pledged to continue supplying rare earth magnets as part of a trade war. However, China is failing to fulfill its promises.
China remains a dominant force in the industry and controls more than 90 percent of global rare earth magnet production.
In 2024, China produced 270,000 metric tons of rare earths. That’s 69 percent of global production. In comparison, the US produced 45,000 tonnes and Myanmar 31,000 tonnes.
The United States accounts for 11 percent of global production, while Myanmar accounts for 8 percent. Nigeria, Australia, and Thailand also produce rare earths. –Agency
