China’s surging demand for rare-earth steel is tightening global supplies and deepening concerns for the US defense sector, including the F-35 fighter jet program.
At industrial hubs such as Baotou in Inner Mongolia, Chinese firms are producing advanced rare-earth steel for high-speed rail, renewable energy, and major hydropower projects, according to China’s state-run Science and Technology Daily.
This domestic push has further reduced exports at a time when Beijing has imposed tighter controls on rare-earth-related materials.
Visual of the Week 🥇
— Visual Capitalist (@VisualCap) December 6, 2025
China holds 44M metric tons of rare earth reserves, with Brazil next at 21M. Altogether, the top six countries control about four-fifths of the world’s known reserves ⛏️https://t.co/IYZb3MtjjT pic.twitter.com/xkc8KRcY9Z
China controls roughly 70 percent of global rare-earth mining and about 90 percent of processing, giving it significant leverage over supply chains critical to defense technologies.
In April, Beijing announced export controls on seven categories of rare-earth items amid renewed trade tensions with Washington.
Several of these materials are used in advanced US military aircraft. The Pentagon said in September that the F-35 Block 4 upgrade will be delayed until 2031, citing supply chain challenges.
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TIPP Staff
