Mounting Rare Earth Trade War and BRICS

Highlights

• China's tightening export controls on critical materials like gallium, germanium, and graphite are disrupting global supply chains.
• U.S. and allies seek self-reliance through strategic mining investments and initiatives in response to China's dominant market position.
• BRICS bloc, especially Indonesia, leveraging policies to attract investments and challenge Western decoupling efforts in critical mineral markets.

A recent article in Mining outlines the escalating tensions in the global critical minerals sector (opens in a new tab)as trade wars and geopolitical dynamics intensify. China's tightening of export controls on critical materials like gallium, germanium, and graphite is reshaping global supply chains, signaling potential future retaliations against U.S. sanctions. While the U.S. and allies aim to build self-reliance through mining initiatives, streamlined permits, and strategic investments (e.g., Rio Tinto’s gallium production and Africa's Lobito Rail Corridor), China's dominant role in mining, processing, and strategic investments—particularly in Africa—remains unparalleled. The BRICS bloc, notably Indonesia, is leveraging policies to attract inward investments, making decoupling efforts by the West a decades-long challenge.

More Questions

Rare Earth Exchanges raises the specter of ongoing China’s Dominance. How can the U.S. and allies realistically counter China's near monopoly in critical mineral processing, particularly for rare earths and graphite? Are Western investments in Africa sufficient to compete with China's deeply entrenched influence, or do they require a more collaborative, partnership-driven model?

When considering the goal of supply chain resilience, is building stockpiles and e-waste recovery enough to address long-term supply risks?

The assumption that "throwing money at the problem" will resolve supply chain issues overlooks complexities like permitting delays and geopolitical instability to name two of many elements of concern. Finally, can BRICS members' strategies, like Indonesia's mineral policies, reshape global trade flows to further entrench China's influence?

The Mining.com article highlights China's proactive strategy (which still leads to about 80%+ control of processing) versus limited Western action and significant rhetoric, emphasizing the urgent need for a cohesive, long-term global strategy to mitigate dependency on Chinese supply chains and secure critical mineral access.