Particle.news
Download on the App Store
5 ARTICLES
·
6d ago

IEA Says China’s Rare Earth Curbs Threaten $6.5 Trillion in Global Output

China’s control of processing could choke key supply chains, forcing years of new refining capacity to be built.

Image
A monument featuring a stylised molecular structure stands outside the office building of China Northern Rare Earth Group, with the Chinese characters ?Build a world-class? inscribed on its base, in the country?s industry hub city Baotou, China, April 6, 2026. REUTERS/Maxim Shemetov
A rare earth metals mine in China's Jiangxi province. The government has tightened controls on the rare materials it considers critical to its rapid economic development.

Overview

  • The International Energy Agency warned on Thursday that full implementation of China’s rare earth export rules could put up to $6.5 trillion of downstream production outside China at risk.
  • The IEA report also said planned graphite controls could threaten about $300 billion of downstream production and noted China accounts for more than 90% of processed graphite output.
  • The economic impact would fall heavily on autos, high-tech, defence and clean-energy industries, with the United States and Europe bearing nearly half of the exposure.
  • The agency observed some near-term progress in new refining projects that cut China’s share of processed rare earths to about 85% last year from roughly 90% in 2023 and said public financing for new projects rose to about $65 billion between 2023 and 2025.
  • Independent reporting has alleged targeted Chinese restrictions on specific U.S. firms and bans on 46 U.S. defence contractors but those claims are not confirmed by the IEA or Reuters and would represent a further escalation if verified.