China has tightened its grip on vital rare earth exports, issuing new regulations that could significantly disrupt global technology supply chains. The Ministry of Commerce’s “Announcement No. 62 of 2025” imposes stricter approval processes for companies exporting products containing rare earth elements, effectively creating bureaucratic hurdles for a market heavily reliant on Chinese processing. This move underscores the strategic importance of these 17 obscure minerals, which are critical for everything from smartphones and electric vehicles to advanced defense systems and renewable energy technologies.
Despite holding only a fraction of global reserves, China processes nearly 90% of the world’s rare earths, leveraging decades of state-backed investment and technological control. The recent export restrictions caused immediate market reactions, with prices for key magnets components like neodymium-praseodymium oxide surging. This has prompted nations like the United States, Japan, and Australia to accelerate diversification efforts and strengthen alliances to secure non-Chinese sources. India, with substantial rare earth reserves, is actively pursuing self-reliance and forging international partnerships to bolster its processing capabilities and reduce dependence on a single supplier.