World

China’s Rare Earths Dominance: How Beijing’s Export Controls Impact Global Industries

China expands rare earth export controls, requiring licenses for key minerals and materials, starting Nov 8.

October 9, 2025, 11:31 AM

Dark industrial steel mill towers spewing thick smoke into a hazy, orange sky above piles of polluted earth.

This dramatic image captures a polluting industrial plant in Baotou, Inner Mongolia, China, with thick smoke rising into the hazy sky above mounds of hazardous waste. By ebenart / Shutterstock.com.

Executive Summary

China has expanded its export controls on five medium to heavy rare earth elements and associated mining/refining technologies, reinforcing its dominance over these critical minerals.

Beyond rare earths, China has also broadened export restrictions on other key minerals like tungsten, indium, bismuth, tellurium, molybdenum, antimony, gallium, germanium, and graphite, as well as advanced battery components and processing technologies.

These escalating controls, some introduced following initial tariffs by President Donald Trump, are strategic moves to consolidate China’s dominant position in global supply chains for materials vital to clean energy, defense, and advanced technology amid geopolitical competition.

The Story So Far

China’s expanded export controls on rare earths and other critical minerals stem from its dominant global position in their production and refining, controlling approximately 90% of rare earth output and significant portions of other strategic materials. These actions are part of Beijing’s systematic effort to consolidate its control over supply chains vital for clean energy, defense, and advanced technology sectors. This strategy is also influenced by escalating geopolitical competition and serves as a response to measures taken by other nations, such as President Donald Trump’s tariffs and Washington’s restrictions on China’s chip sector.

Why This Matters

China’s expanded export controls on critical minerals, including rare earths and graphite, significantly tighten its grip on global supply chains vital for clean energy, defense, and advanced technology. This strategic move enhances Beijing’s geopolitical leverage, potentially creating supply vulnerabilities for other nations and prompting them to accelerate costly efforts to diversify their sourcing and refining capabilities, which could ultimately impact the pace of the global energy transition and technological innovation.

Who Thinks What?

China is expanding its export controls on rare earths, graphite, and related technologies to reinforce its dominant position in global supply chains and consolidate control over critical materials essential for clean energy, defense, and advanced technology sectors, partly in response to actions like the initial tariffs introduced by President Donald Trump.

Global industries and nations reliant on critical minerals and technologies are significantly impacted by China’s tightening export controls, which affect supply chains vital for sectors such as clean energy, defense, and advanced technology.

China has expanded its export controls on rare earths and related technologies, further tightening its dominance over critical minerals essential for the global energy transition. The move, announced on Thursday by China’s commerce ministry, adds five medium to heavy rare earth elements—holmium, erbium, thulium, europium, and ytterbium—and associated materials to the control list, effective November 8. This expansion requires exporters to obtain licenses from Beijing before selling these materials overseas, building on existing restrictions.

Expanding Rare Earth Controls

The newly added rare earth elements will join over twenty other elements and related materials already subject to export controls. China, which produces approximately 90% of the world’s rare earths, first placed seven elements and related materials on an export control list in April. These minerals are crucial for sectors such as clean energy, defense, and automotive industries, with the new additions playing roles in fiber-optics and nuclear power.

While rare earths are common in the Earth’s crust, China has developed expertise in the technically challenging and environmentally intensive refining processes, often at a lower cost. Beijing has systematically increased its control over the rare earths sector, including a December 2023 ban on the export of technology for making rare earth magnets and an existing ban on refining technology. Thursday’s announcement further added dozens of machines and materials used in mining and refining to the control list. Domestic production is strictly managed through a quota system granted exclusively to state-owned miners.

Broader Mineral Export Restrictions

Beyond rare earths, China has implemented various export restrictions on other key minerals since 2023. In early February, following the introduction of President Donald Trump’s initial 10% tariff on Chinese goods, China imposed export controls on tungsten, indium, bismuth, tellurium, and molybdenum—metals used in defense, clean energy, and other industries. These measures require licenses for 20 related products but have largely stopped short of outright bans.

Battery and Semiconductor-Related Technologies

In January, China proposed restricting the export of certain technologies for cutting-edge battery components and the processing of critical minerals like lithium and gallium. These controls were enacted in July, with at least one company ceasing exports of listed products. On Thursday, these controls were broadened to include more lithium battery-related items and equipment for manufacturing specific lithium-ion batteries.

Beijing also banned the export of antimony, gallium, and germanium to the United States in late 2024, in response to Washington’s crackdown on China’s chip sector. While an outright ban applies to the U.S., China had gradually introduced export licensing regimes for these three metals over the preceding 18 months. China dominates the supply chain for these minerals, mining or refining between half and 90% of global supply. For instance, exports of antimony, a strategic metal used in flame retardants and solar power, to major buyers like Japan, India, and South Korea had barely resumed three months after export licenses were introduced.

Graphite Controls

Effective November 8, China has also expanded existing export controls on graphite to include certain synthetic graphite materials. In October 2023, China mandated export permits for three types of “highly sensitive” graphite products, citing national security concerns. China is the world’s leading producer and exporter of graphite, and refines over 90% of the global supply into material vital for virtually all electric vehicle batteries.

Key Takeaways

China’s ongoing expansion of mineral and technology export controls underscores its strategic efforts to consolidate control over critical materials. These measures are designed to reinforce China’s dominant position in global supply chains, particularly those vital for clean energy, defense, and advanced technology sectors, amid escalating geopolitical competition.