Asia accounts for the majority of global critical minerals production, processing, and consumption, with China occupying a structurally dominant position across the entire value chain. China mines over 60% of global rare earth elements, refines approximately 70% of global cobalt, 60% of lithium chemicals, and controls the dominant share of graphite anode processing and NdFeB magnet manufacturing globally. Beyond China, Indonesia has become the world’s largest nickel producer, while Australia — though geographically Oceanian — is deeply integrated into Asian battery supply chains as the primary source of lithium spodumene, nickel sulphide, and cobalt for Chinese and South Korean processors. Critical minerals Asia supply chains are the foundation of the global EV and clean energy industries.
Critical Minerals Overview — Asia
China’s critical minerals dominance is most acute at the processing stage. According to IEA data, China accounts for approximately 85% of global rare earth processing, 60% of lithium chemical refining, 70% of cobalt refining, and over 90% of graphite anode production. This concentration means that even minerals mined outside China — including cobalt from the DRC and lithium spodumene from Australia — frequently flow through Chinese facilities before reaching battery manufacturers. China has reinforced this position through export licensing restrictions on gallium, germanium, graphite, and antimony since 2023, and expanded rare earth processing technology export controls in 2025.
Indonesia’s emergence as the world’s largest nickel producer — accounting for over 50% of global output — has reshaped the battery nickel supply chain. Indonesia has banned nickel ore exports since 2020 to drive domestic processing investment, resulting in a rapid expansion of HPAL (high-pressure acid leach) and nickel matte facilities, predominantly with Chinese financing and technology. South Korea hosts three of the world’s largest battery manufacturers — LGES, Samsung SDI, and SK On — and is a significant consumer of battery-grade critical minerals from across the region.
Key Minerals by Country — Asia
| Country | Key Minerals | Notable Projects / Facilities | Status |
|---|---|---|---|
| China | REE, Graphite, Lithium, Tungsten, Gallium, Germanium | Bayan Obo (REE), multiple Li chemical plants | Production (dominant) |
| Indonesia | Nickel, Cobalt | Morowali, Weda Bay HPAL facilities | Production (rapidly expanding) |
| Philippines | Nickel, Chromite | Surigao nickel laterites | Production |
| Myanmar | REE (heavy), Tin, Tungsten | Kachin REE deposits | Production — governance concerns |
| India | Lithium (early stage), REE, Coal | Reasi lithium discovery (GSI) | Early exploration |
| Japan | Processing / recycling hub | Sumitomo, JX Metals refining | Refining / recycling |
| South Korea | Battery manufacturing | LGES, Samsung SDI, SK On | Manufacturing (major) |
Major Companies & Projects — Asia
Chinese state-linked and private companies dominate the Asian critical minerals landscape. China Molybdenum / CMOC (HKEx: 3993) is the world’s largest cobalt producer, primarily through its Tenke Fungurume and Kisanfu mines in the DRC. Zijin Mining (HKEx: 2899) is a major global copper, gold, and lithium producer. Ganfeng Lithium (SHE: 002460) and Tianqi Lithium (SHE: 002466) are the world’s largest lithium chemical producers, with processing capacity in China and downstream investments in Australia and Chile. CNGR Advanced Material and Huayou Cobalt control large shares of battery precursor and cathode material production.
Japan’s Sumitomo Metal Mining (TYO: 5713) and JX Metals operate significant nickel and copper refining capacity. South Korea’s battery manufacturers — LG Energy Solution (KRX: 373220), Samsung SDI (KRX: 006400), and SK On — are among the world’s largest consumers of battery-grade lithium, cobalt, and nickel, and are investing in supply chain diversification to reduce Chinese material dependency.
Policy, Regulation & Investment Climate
China’s export licensing regime for critical minerals has expanded progressively since 2023. Gallium and germanium export licences were introduced in August 2023, graphite restrictions followed in October 2023, antimony controls in September 2024, and rare earth processing technology export restrictions in early 2025. These measures have increased supply uncertainty for Western manufacturers and accelerated investment in alternative sources. Indonesia’s nickel export ban and domestic processing requirements have been tested at the WTO by the EU, but Indonesia has maintained the policy, attracting over $30 billion in nickel processing investment since 2020, the majority from Chinese companies.
Asia in the Global Critical Minerals Supply Chain
Asia’s role in global critical minerals is simultaneously indispensable and contested. Western supply chain diversification efforts are explicitly designed to reduce dependence on Chinese processing, but replicating Chinese capacity outside Asia requires years of investment and carries execution risk. Japan and South Korea, as major consuming nations and US treaty allies, are active participants in the Minerals Security Partnership and are investing in supply chain diversification through government-backed financing vehicles — Japan’s JOGMEC and Korea’s KORES — and corporate offtake agreements with non-Chinese producers in Australia, Canada, and Africa.
Latest Critical Minerals News — Asia
This section features the latest critical minerals news from Asia. Browse all Asia coverage below.
| Indicator | Data Point | Source |
|---|---|---|
| China share of global REE processing | ~85% | IEA, 2024 (estimated) |
| China share of global graphite anode production | >90% | Benchmark Mineral Intelligence (estimated) |
| Indonesia share of global nickel production | ~50%+ | USGS, 2024 (estimated) |
| Indonesia nickel processing FDI (2020–2025) | $30bn+ (est.) | Indonesian government / industry estimates |
Data is for informational purposes only and does not constitute investment advice. Figures are subject to revision.
Why does China dominate critical minerals globally?
China’s dominance reflects decades of state-directed investment in mining, processing, and refining, combined with lower regulatory costs and integrated supply chains from ore to battery components. China controls over 85% of rare earth processing, 60% of lithium chemical refining, 70% of cobalt refining, and over 90% of graphite anode production. Export restrictions introduced since 2023 on gallium, germanium, graphite, antimony, and rare earth processing technology have reinforced this leverage.
What critical minerals does Indonesia produce?
Indonesia is the world’s largest nickel producer, accounting for over 50% of global output. Since banning nickel ore exports in 2020, Indonesia has attracted over $30 billion in processing investment, predominantly Chinese-backed, creating a rapidly expanding domestic HPAL and nickel matte industry. Indonesia also produces cobalt as a by-product of nickel processing. The country’s nickel reserves are primarily laterite deposits in Sulawesi, Maluku, and Papua.
Which Asian countries are building non-Chinese critical mineral supply chains?
Japan and South Korea are the most active in pursuing supply chain diversification. Japan’s JOGMEC provides financing for critical mineral projects in Australia, Canada, and Africa through government-backed loans and equity stakes. South Korea’s KORES performs a similar function. Both countries are signatories of the Minerals Security Partnership and have signed bilateral critical minerals agreements with Australia, Canada, and the US. India is at an earlier stage, with lithium and rare earth exploration accelerating since 2023.
What are China’s critical mineral export restrictions?
China has introduced export licensing requirements on gallium and germanium (August 2023), graphite (October 2023), antimony (September 2024), and rare earth processing technology and equipment (early 2025). These restrictions require exporters to obtain licences and submit end-use documentation. The measures have created uncertainty for downstream manufacturers in Europe, Japan, South Korea, and the US, and have accelerated investment in alternative supply sources.
How important is Myanmar to the rare earth supply chain?
Myanmar has become a significant source of heavy rare earth elements — particularly terbium, dysprosium, and holmium — since Chinese domestic restrictions reduced output from Chinese heavy REE deposits. Myanmar’s Kachin region hosts alluvial rare earth deposits mined under conditions that have attracted serious governance, environmental, and human rights concerns. Adamas Intelligence estimates Myanmar has supplied 30–50% of China’s heavy REE raw material imports in recent years. This supply source is considered high-risk by Western governments and is excluded from qualifying supply chains under US and EU critical minerals frameworks.
What is the outlook for critical minerals in Asia in 2026?
China’s processing dominance is unlikely to diminish materially in 2026. Indonesia’s nickel HPAL capacity continues to expand. India is accelerating domestic critical minerals programmes following its 2023 lithium discovery. Japan and South Korea are investing in supply chain diversification but remain highly dependent on Chinese-processed materials in the near term. Analysts at Adamas Intelligence and Benchmark Mineral Intelligence expect China’s share of processed battery materials to remain above 60% through at least 2028 across most categories.
