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China Cuts Rare Earth Exports to US, Controls 92% Processing Market

China Dominates Rare Earth Minerals Market Amid Export Restrictions and Rising US Trade Tensions in 2025

  • China controls 61% of mined rare earth minerals and 92% of global processing output.
  • BRICS nations increased rare earth mineral supply by 12.6% in the first nine months of 2025.
  • China reduced rare earth mineral exports in September by 30.9% compared to August.
  • Exports to the U.S. fell 7.8% in value to $342.3 million due to China’s selective export policies.
  • Trade tensions between China and the U.S. escalate as China restricts rare earth mineral exports amid tariff threats.

China, a member of the BRICS group, continues to dominate the rare earth minerals industry by controlling 61% of mined supplies and 92% of global output at the processing stage as of 2024. The Chinese government is restricting exports, particularly to the United States, sparking increased trade tensions.

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According to the International Energy Agency, China holds a dominant position in both mining and processing rare earth minerals, which are essential for multiple industries, including technology and defense. Meanwhile, the General Administration of Customs of China reported that the BRICS countries’ overall rare earth supply rose by 12.6% in the first nine months of 2025, increasing by over 48,350 tons year-on-year.

Despite this growth, China is limiting its export volumes. Recent figures show that in September 2025 alone, China cut rare earth mineral exports by 30.9% from August levels to 4,000 tons. This policy shift caused export values to drop 7.8% to $342.3 million, mainly because China is choosing not to export to the U.S. The restrictions aim to pressure countries into aligning with Beijing’s policies.

The export limitations have intensified tensions between China and the U.S. Former U.S. President Donald Trump responded by threatening 100% tariffs on Chinese imports. Both nations appear ready to negotiate, but each leader maintains strong stances to shape trade agreements in their favor.

China’s influence over the rare earth minerals market gives it significant leverage in global trade, especially as these minerals are vital for manufacturing electronics, renewable energy technologies, and defense systems. The ongoing trade disputes reflect the strategic importance of rare earth supplies in international relations.

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