Beijing’s dominance in rare earth processing leaves others scrambling to close the gap: ‘China is the leader, and the U.S. is far behind’

China’s near‑monopoly over rare earth processing has turned a once‑obscure corner of mining into a frontline of geopolitical competition, forcing the U.S. and its allies into a costly race to catch up.

“Clearly, China is the leader, and the U.S. is far behind,” veteran mining executive Mick McMullen told Fortune on March 10, at the sidelines of the U.S. Capital Access Forum in Singapore, organized by business advisory firm Hall Chadwick. “It’s a bit unbelievable that it’s taken so long for everyone to realize that maybe we should have some of these things in house.”

China accounts for roughly 70% of global rare earth production, but it is the country’s dominance in processing that gives Beijing real leverage. With close to 90% of the world’s rare earth refining and processing capacity, China effectively controls the flow of materials used in products ranging from electric vehicles and wind turbines to advanced semiconductors and precision‑guided munitions.

Since the 1980s, China has shelled out billions of dollars in investment and subsidies to secure its dominant position across the supply chain of rare earth metals. “China has been at this for more........

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