New Delhi, July 6: China continues to dominate global rare earth mining and processing, but its advantage in the sector is facing increasing technological competition, according to a recent report.
The report said that the United States and Japan hold a significant share of high-value patents in advanced rare earth technologies, particularly in areas such as high-performance magnets, electric mobility components, renewable energy systems, and advanced electronics.
While China remains the primary supplier of raw rare earth materials and has strong processing capabilities, the report highlighted that innovation and intellectual property in downstream applications are increasingly concentrated in US and Japanese firms and research institutions.
Experts cited in the report suggest that this shift could gradually influence global supply chains by increasing competition in value-added segments of the rare earth ecosystem. Countries dependent on these materials may also accelerate efforts to diversify sourcing and invest in alternative technologies.
However, the report also acknowledged that China’s scale, infrastructure, and established supply networks continue to give it a strong position in the global rare earth market, ensuring that it remains a key player despite growing competition in patents and innovation.