Archive · 25 Dec 2025
Rare Earths Reshape Global Geopolitics in 2025
In 2025, rare earth minerals became very important in global politics.
China, which controls most of the world's rare earth production, made it harder to export these minerals.
This caused problems for many industries, like electric vehicles and wind turbines, because they need these minerals to work.
Countries like the US, EU, Japan, and India tried to find other sources or make their own supplies.
India even started a big program to make its own rare earth magnets.
These minerals are now seen as very valuable for national security and economic power.
China tightened export controls on rare earth minerals in 2025, disrupting global supply chains.
Rare earths are critical for industries like electric vehicles, wind turbines, and defense manufacturing.
China controls 70% of global rare earth mining and 85-90% of refining and processing.
Global demand for rare earths is projected to rise by nearly 700% by 2040.
Countries are investing in domestic production and diversifying supply chains to reduce dependence on China.
- Who
- Global markets, China, US, EU, Japan, India, NATO countries
- What
- China's tightening of rare earth export controls disrupted global supply chains
- When
- 2025, with significant events in April and October
- Where
- Global, with focus on China, US, EU, Japan, India
- Why
- To gain geopolitical leverage and secure strategic industries
- Global Rare Earth Production (2025)
- 196,000 tonnes
- China's Rare Earth Mining Share (2025)
- 70%
- China's Rare Earth Refining Share (2025)
- 85-90%
- China's Permanent Magnet Production Share (2025)
- Over 90%
- EV Rare Earth Magnet Requirement
- 1-2 kg per vehicle
- Offshore Wind Turbine Rare Earth Requirement
- 600-2,000 kg each
- Fighter Jet Rare Earth Requirement
- Over 400 kg
- India's Rare Earth Reserves Share
- 6%
- India's Rare Earth Magnet Import Dependence
- 100%
- India's Magnet Manufacturing Incentive (2025)
- ₹7,280 crore
Sources
What is friendshoring? Why Ernst & Young says it will reshape global supply chains in 2026
India’s trade journey in 2025: Record exports, tariff shocks and the long road to a US deal
Rare earths and the new power play: How supply chains reshaped global geopolitics in 2025
India may miss the $1 trillion export target of FY26 as shipments lose momentum: GTRI
‘Not just a climate issue’: Water & its scarcity to become geopolitical and economic constraint in 2026, says EY report
GTRI Urges India to Focus on Export Gains From Existing FTAs
