China's Rare Earth Grip Reshapes Global Power in 2025, Sparks Scramble for Alternatives

• China's tightened rare earth export controls in 2025 severely disrupted global supply chains, impacting EV, renewable energy, and defense sectors.
• Despite global production of 196,000 tonnes, China controls 70% of mining, 85-90% of processing, and over 90% of permanent magnet production, creating critical dependency.
• The disruption led to global EV production cuts (e.g., Maruti Suzuki), NATO classifying rare earths as strategic, and extreme price volatility (yttrium surged 4000%).
• Nations like the US, EU, and Japan launched initiatives to develop non-China refining capacity and secure alternative supplies, with over 146 projects underway globally.
• India, despite 6% global reserves, imports 100% of rare earth magnets; approved a ₹7,280 crore scheme to build domestic manufacturing capacity.

Why It Matters: China's rare earth dominance in 2025 highlighted supply chain control as a critical geopolitical power.