Published : 29/09/2025
In recent years, people have often heard news related to rare earths and trade wars, and they might also know that China is the number one country for rare earths.
How much rare earth does China really have, and what share of the global market does it hold?
Are rare earths not earth, and not rare?
First, it should be explained that although rare earth oxides refined and processed from ores are earth-like, they are not earth. It is the collective name for 17 metallic elements such as Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), and others.
These 17 metallic elements were successively discovered between the end of the 18th century and the mid-20th century. In the past, due to poor analytical techniques, people thought they were all very rare, hence the name "rare".
Later, although it was confirmed that their reserves are not small, at least more abundant than precious metals like gold and silver, separating and refining rare earths from minerals is still not easy and involves environmental issues, so they are still "rare".
Rare earths have special atomic structures and easily combine with other elements. They have unique physical and chemical effects in light, electricity, magnetism, and catalysis, making them extremely important raw materials in industrial and technological development.
Areas such as electronic products, national defence and military industries, aerospace, and new energy all must use rare earths.
Read more: Where is "The World's Capital of Rare Earth", Bayan Obo?
Read more: Which Chinese province has the most heavy rare earths?
From mobile phones to fighter jets, nothing can be done without rare earths
According to reports, components such as the screen and storage of smartphones all require rare earths, with each device requiring approximately 10 to 12 grams; electric vehicles require rare earths for their motors, batteries, and sensors, with an average of 10 kilograms used per vehicle; a one-megawatt wind turbine requires over 170 kilograms.
Each U.S. F-35 stealth fighter jet uses over 400 kilograms of rare earths; a Virginia-class nuclear submarine requires even more, four tonnes... These figures reflect the importance and strategic nature of rare earths.
Some media reports refer to rare earths as "industrial MSG", but some experts do not agree, because MSG is non-essential and can be substituted, whereas rare earths are indispensable and irreplaceable. The experts believe that calling rare earths "industrial vitamins" is a more appropriate description.
Read more: World's largest gold producer! Which China's province has the most gold?
China produces 2/3 of the world's rare earths
Having said that, rare earths have recently been cited by the media as China's biggest bargaining chip in the trade war, because of their critical nature and, more importantly, because China has held an absolutely dominant position in the supply of rare earths since the mid-1980s.
Statistics on how much rare earth China has vary slightly from party to party.
According to data from the United States Geological Survey, which is more commonly cited by the media, global rare earth reserves stood at about 130 million tonnes in 2022, of which 44 million tonnes were in China, accounting for 33.8%.
The "rare earth powers" that followed, Vietnam, Brazil and Russia, each had only about half as much as China.
Some media outlets also divide reserves into industrial reserves and proven reserves, the former of which can be understood as economically exploitable resources. According to relevant reports, China's industrial reserves exceed 50 million tonnes.
In addition to its large reserves, China also has overwhelming production capacity and output. In 2024, China produced 270,000 tonnes of rare earths, accounting for more than two-thirds of the global output.
It could be said that without China's rare earths, a lot of global production would be greatly affected. In May 2025, Ford's Chicago plant temporarily halted production due to a sharp slowdown in the supply of rare earth materials.
The only country with a complete rare earth industrial chain
More importantly, after years of development, China has mastered the core technologies for rare earths, from exploration and mining to refining and processing, and is the only country in the world with a complete industrial chain.
Even if other countries find resources, it takes several years or longer to develop the technology and build the industrial chain. Therefore, it can be expected that China's dominant position in the rare earth supply will not be shaken for a considerable period of time.
In 1992, 88-year-old Deng Xiaoping made his Southern Tour, during which he gave several talks and left behind many famous sayings.
One of them, which may not have received much attention at the time, was "The Middle East has oil, China has rare earths". The remark reflects the strategic value of rare earths and also shows Deng's foresight.
Finally, it is worth mentioning that while mining rare earths, China is also continuing to use technology to find mineral sources and is constantly making new discoveries.
As for which provincial administrative regions China's rare earth resources are distributed in, and how astonishing the reserves of Bayan Obo (白雲鄂博), known as the "Rare Earth Capital of the World", are, that will be discussed in another article.