China tightens grip on global defence manufacturing through rare earth export curbs: Expert
Neha Mukherjee, Research Manager at Benchmark Mineral Intelligence (a London-based data and supply chain intelligence platform for rare earth elements), told ANI: “Basically everyone is dependent on China as a standing army due to the extensive use of these minerals in defense and we are days, if not weeks, away from a crisis.” he said.
Mukherjee explained that although the technology to extract heavy rare earths is similar to that of light rare earths, the ripple effect is much broader.
Emphasizing that the end-use applications of these materials are both broad and critical, he said, “So even though there is technically no ban or restriction for rare earth elements, it transcends everything and pervades everything.”
Much of the heavy rare earths are vital for defense production. “For example, a Tomahawk missile or an F-35 fighter jet, an F-35 alone uses more than 400 kilograms of rare earth. A submarine uses 4.6 tonnes of rare earth,” Mukherjee said. he said.
He added that the new export restrictions clearly show China’s strategic intent. “Export restrictions make it clear that China does not want to supply any defense manufacturing enterprises,” he said. With 95 percent of the world’s rare earths sourced from China, the move puts huge pressure on defense manufacturers worldwide, disrupting supply chains for fighter jets, missiles and other military technologies. Mukherjee warned that this dependence makes countries vulnerable to serious supply shocks during rising geopolitical tensions. This development comes ahead of US President Donald Trump’s diplomatic tour to Malaysia, South Korea and Japan, which will include an important meeting with Chinese President Xi Jinping in South Korea. “It’s very strategically timed, just weeks before the two presidents meet, because there are the most critical minerals on the leverage chart,” Mukherjee said.
Following the escalation of the tariff war in April, China announced it was imposing export controls on seven medium and heavy rare earth elements that are small in quantity but essential for applications including electronics, electric vehicles and defense. “They are used everywhere in our daily lives, in speakers, phones, laptops, robots, as well as electric vehicles, and have a strategic application in defense,” he said.
Mukherjee announced that this movement will stop without a complete ban. “This is still not a de facto ban. It just requires anyone trying to export to apply for a licence.” However, the process caused serious delays. Pointing out the bureaucratic obstacles that slowed down exports and disrupted production, he added, “Things were very different in the field.”
Now, just weeks before the Trump-Xi meeting, Beijing has intensified its stance. “China has added more heavy rare earth elements to the list,” Mukherjee said. “This time there will also be a licensing requirement for anyone trying to use any material re-imported from China.”
He announced that countries that import raw materials from China, process them and re-export finished products will now face licensing obstacles. “Even intellectual property (IP) from China will be affected,” he added.
Mukherjee concluded that the latest export restrictions underscore China’s continued dominance of critical minerals, a dominance that gives it an advantage in global trade, technology and defense preparedness.
