Commodity Trends

For decades, the global technology and manufacturing sectors have relied heavily on Chinese rare earth supplies. China currently controls more than 80% of the world’s rare earth refining capacity and supplies the vast majority of the world’s neodymium magnets. This concentration of supply poses significant strategic and economic risks, as disruptions—whether from trade disputes, export restrictions, or internal Chinese policy shifts—can ripple across global industries. The result is a fragile supply chain that leaves countries like the United States vulnerable to material shortages and price shocks. This dependence also has significant geopolitical implications. In times of rising international tensions, China has shown a willingness to leverage its dominance in rare earths as a strategic tool, imposing export quotas or restrictions that can hamper defense readiness and energy transitions in other nations. The situation highlights the importance of establishing resilient domestic supply chains that can withstand diplomatic rifts and economic coercion. Policymakers increasingly view rare earth independence not just as an economic goal, but as a national security imperative.