By Minener Editorial Team
April 13, 2025
When Beijing announced last week it was halting exports of seven rare earth elements—terbium, dysprosium, yttrium, among others—it sent shockwaves through global industries reliant on these strategic materials. While the immediate trigger was the latest escalation in the ongoing U.S.-China trade war, the implications go far beyond geopolitical posturing. This is a pivotal moment in the evolution of global supply chains—and a wake-up call to those who still underestimate the strategic value of rare earths.
More Than Just Minerals
Rare earths are not rare in the geological sense. What makes them rare is the geopolitical concentration of their processing. China controls approximately 90% of global rare earth refining capacity, as highlighted in this Reuters report. These materials are embedded in everything from electric vehicles and smartphones to military-grade laser systems and wind turbines.
The West’s delayed diversification efforts have now run into a hard wall of realpolitik. By requiring exporters to obtain Ministry of Commerce licenses—a process that can take months and is notoriously opaque—Beijing has effectively frozen outbound shipments. According to Axios, this move fits into a broader strategy of economic retaliation against the U.S. amid rising trade tensions.
Xi Jinping’s Rare Earth Doctrine
President Xi is playing a long game. China’s latest move isn’t merely retaliation—it’s a demonstration of leverage. If semiconductors were the chokepoint of the last decade, rare earths are the pressure valve of the next. In fact, as noted in The Australian, the move could unexpectedly benefit non-Chinese producers like Lynas and Northern Minerals by accelerating Western investment.
A Crisis and an Opportunity
While the disruption poses serious short-term risks for manufacturing sectors across Europe, North America, and Asia, it also presents an opportunity. Australia’s Lynas Rare Earths is expanding capacity outside of China. The U.S. is funding new refining facilities in Texas. And Latin American countries like Brazil, Chile, and Argentina, though newer to the game, are beginning to assess their potential.
Governments must now treat rare earths not just as commodities, but as strategic resources. Much like oil in the 1970s, stockpiles, partnerships, and domestic refining will be as crucial as extraction.
For Latin America: A Critical Window
This is also a call to action for Latin America. In a region rich with mineral potential but still lacking industrial depth in rare earth processing, the time to act is now. Countries like Brazil and Colombia have reported geological signs of rare earth deposits, but lack policy clarity and infrastructure.
If supported by intelligent regulation and international alliances, Latin America could play a key role in the global supply shift—just as it has with lithium.
Final Thoughts
The rare earth export freeze is more than a trade spat. It is a structural reshuffling of global resource security. Those who diversify supply chains, develop domestic capabilities, and act quickly will emerge stronger.
And those who don’t? They may find themselves reading the fine print of a Chinese export license.