- BRICS nations control an estimated 72% of global rare earth reserves, dominating the critical mineral sector.
- China alone holds a commanding 36–40% global share, leveraging its position to influence trade and reduce reliance on the US dollar.
- The G7 is scrambling for alternatives, but remains dependent on China for the refining of these essential minerals.
- This resource imbalance is becoming a focal point in the broader geopolitical and financial rivalry between the two blocs.
A financial tug-of-war for control of the future is now centered on the earth’s crust, as the BRICS alliance and the G7 vie for dominance over rare earth reserves. The very minerals powering Tesla cars, NVIDIA chips, and advanced weaponry have become the new oil in a billion-dollar strategic contest. This struggle intensified after India–Brazil-critical-minerals-mou-mean-for-the-two-countries/article70672506.ece”>India signed an MoU with Brazil in February for bilateral cooperation on these critical resources.
However, the playing field is highly uneven due to the concentration of these reserves. Consequently, the 11-member BRICS bloc holds a massive 72% share of global rare earth minerals. Meanwhile, G7 nations like the United States possess only a tiny fraction, with an estimated 1.5 million metric tons.
China’s dominance is particularly striking, commanding 36–40% of global reserves. The Xi Jinping administration actively leverages this control for trade deals and geopolitical influence. It has even tightened exports to the West, consolidating its power over the supply chain.
Therefore, this resource grip spells long-term trouble for the US dollar’s supremacy. BRICS could rewrite trade policies to favor local currencies, advancing their de-dollarization agenda. “Prudent de-risking” of this dependency is now a top priority for Western officials, as noted in emergency meetings.
Facing this stark reality, the G7 seeks partnerships to secure supply, like a $550 billion pact between the US and Japan. A fundamental inflection point has been reached where the West owns iconic brands like Apple, but the East controls the essential ingredients. The global financial order is experiencing a tangible shift in power toward emerging economies.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
