RT

Beijing dominates the global supply of minerals that are critical for modern technology

It could take the West up to ten years to challenge China’s dominance in rare earths, Goldman Sachs has warned. The minerals, critical for most modern technology, remain at the center of a trade dispute between Washington, the EU and Beijing.

China accounts for over 90% of global rare-earth refining and 98% of all magnet production, according to data from the International Energy Agency and industry analysts.

While China mines about two-thirds of the world’s rare-earth ore, it also dominates the processing and manufacturing stages that transform those materials into usable components.

“It’s going to take years to build up independent supply chains in the West,” said Daan Struyven, Goldman’s co-head of global commodities research in a podcast on Tuesday. He estimated it would take around a decade to build a mine and about five years to construct a refinery.

In April, China imposed export controls on several rare-earth elements used in military applications, citing national-security concerns and the need to safeguard strategic resources. Earlier this month, it expanded the rules with tougher licensing and extraterritorial provisions, particularly affecting exports tied to US defense and semiconductor industries.

Analysts view Beijing’s restrictions as a response to Washington’s curbs on advanced semiconductors and chipmaking equipment introduced since late 2022 and which included the seizing of a Chinese-owned chip-production plant by the Dutch government under pressure from the US.

The measures aim to prevent China from developing high-end chips that could enhance its military and artificial-intelligence capabilities.

US President Donald Trump has said the two countries are “effectively in a trade war” and has threatened to impose an additional 100% tariff on Chinese goods starting in November. China has vowed to “fight to the end.”