China critical minerals dominance now extends across nearly the entire value chain for the world’s most strategically important materials. The country dominates refining for 19 of the 20 minerals tracked by the International Energy Agency, with an average market share of around 70% — a position that has hardened rather than loosened despite years of Western diversification efforts.
That concentration came into sharp focus in June 2026, when G7 leaders meeting in Evian, France formally launched a critical minerals alliance aimed squarely at reducing dependence on Beijing-controlled supply chains, days after China added MP Materials and USA Rare Earth to its export control list.
China’s Critical Minerals Production by the Numbers
China’s control is most extreme in rare earths, where its position spans extraction through to finished components. According to IEA data, China held a 59% share of rare earth mining last year, 91% of refining and separation, and 94% of permanent magnet manufacturing — up from roughly 50% magnet share just two decades ago.
| Mineral | China’s Approximate Global Share | Stage of Dominance |
|---|---|---|
| Rare earth magnets | 94% | Manufacturing |
| Rare earth elements | 91% | Refining/separation |
| Gallium | ~98% | Refining |
| Tungsten | ~83% | Mining/processing |
| Graphite | ~79% | Processing |
| Rare earth mining | 59% | Extraction |
The pattern repeats across battery materials and semiconductor inputs: China refines the bulk of the world’s cobalt and lithium even where the raw ore is mined elsewhere, and dominates gallium and germanium output — both subject to its own export licensing regime since 2023.
The Companies Behind China’s Mineral Grip
Beijing’s dominance is executed through a small number of state-directed national champions. China Northern Rare Earth Group holds exclusive mining rights to the Bayan Obo deposit, the world’s largest rare earth mine, and specialises in light rare earths used in EV magnets. China Rare Earth Group, formed through a state-mandated merger of China Minmetals, Chinalco and the Ganzhou Rare Earth Group, controls roughly 70% of China’s heavy rare earth output — including dysprosium and terbium, the elements most critical to defence-grade magnets. Shenghe Resources operates as China’s overseas acquisition arm, buying stakes in foreign rare earth projects and routing the output back to Chinese refineries.
In cobalt and copper, CMOC Group (formerly China Molybdenum) holds a dominant position in the DRC’s Copperbelt, including the Tenke Fungurume and Kisanfu mines — a supply route covered in detail in CMN’s China cobalt supply chain analysis.
Export Controls and Their Defence Supply Chain Impact
Beijing has shown increasing willingness to weaponise this concentration. In June 2026, China added MP Materials and USA Rare Earth to its export control list, blocking their access to Chinese dual-use technologies. Restrictions on heavy rare earths — dysprosium and terbium specifically — have pushed prices outside China to several multiples of domestic Chinese rates, directly affecting automakers and defence magnet supply chains. CMN’s China export controls buyer guide covers the licensing mechanics in detail.
A US Congressional Select Committee on China investigation found that China’s domestic legal framework around mineral price reporting gives Beijing the ability to raise and lower prices to favour its own economic and national security interests — effectively making it difficult to publish prices that deviate from official guidance.
The G7 Counter-Strategy
At the June 2026 Evian summit, G7 leaders committed to coordinating processing and industrial capacity across member states and partner countries to diversify critical minerals value chains. The declaration, while avoiding direct reference to China, expressed concern over “non-market policies and practices and economic coercion, including arbitrary export restrictions.”
Beyond the alliance itself, the United States is developing a rare-earth price floor mechanism intended to insulate Western buyers from Beijing’s pricing leverage, alongside coordinated stockpiling commitments and data-sharing on supply disruptions among G7 members.
Why China’s Mineral Dominance Matters for Buyers
For procurement and defence supply chain specialists, China’s grip on refining capacity — rather than mining alone — is the structural chokepoint. Raw ore can be sourced from Australia, the DRC or South America, but the bulk of conversion into battery-grade or magnet-grade material still happens inside China. Until Western refining capacity scales meaningfully, buyers in EV, defence and semiconductor supply chains remain exposed to a market where, per the Select Committee on China’s findings, pricing itself is subject to state-directed policy rather than open competition.
How much of the world’s critical minerals does China control?
China dominates refining for 19 of the 20 minerals tracked by the IEA, averaging around 70% global market share, with even higher concentration in rare earths, gallium and tungsten.
What share of rare earth production does China control?
China held a 59% share of rare earth mining, 91% of refining and separation, and 94% of permanent magnet manufacturing, according to IEA data.
What is the G7 critical minerals alliance?
Launched at the June 2026 G7 summit in Evian, France, the alliance commits member nations to coordinating processing and industrial capacity to diversify critical minerals supply chains away from concentrated sources.
Which Chinese companies control rare earth production?
China Northern Rare Earth Group and China Rare Earth Group are the two dominant national champions, alongside Shenghe Resources for overseas acquisitions and CMOC Group for cobalt and copper.
