China holds a globally significant position in metal raw materials due to the following key advantages:
Abundant Natural Reserves
Rare Earth Dominance: China controls ~70% of global rare earth reserves and supplies ~90% of global refined rare earth products. These metals (e.g., neodymium, dysprosium) are critical for high-tech industries like electronics, EVs, and defense.
Strategic Metals: China ranks 1st in reserves of tungsten (60% global share), antimony, and vanadium. It is also a major producer of aluminum, copper, zinc, and lithium.
Scale Advantage: Massive domestic mining operations (e.g., Bayan Obo rare earth mine) ensure stable supply chains.
Advanced Refining & Processing
China leads in smelting and refining technologies for rare earths, lithium, and battery-grade metals. Its cost-efficient refining ecosystem attracts global manufacturers.
Dominates midstream processing: 85% of global cobalt refining and 70% of lithium processing occur in China, despite relying on imported ores.
Integrated Supply Chains
Vertical integration from mining to manufacturing (e.g., CATL for batteries, Baowu Steel Group for steel) reduces costs and enhances competitiveness.
Infrastructure: World-class ports (e.g., Ningbo-Zhoushan) and rail networks streamline global metal exports.
Policy & Investment in Future Metals
“Dual Carbon” goals (2030/2060) drive investments in green metals (copper for renewables, lithium for EVs).
State-backed initiatives secure overseas mining assets (e.g., cobalt in Congo, lithium in Argentina).
R&D focus: China files 70% of global patents in rare earth permanent magnets and battery technologies.
Market Influence
Pricing power: China’s metal output fluctuations directly impact global prices (e.g., steel, aluminum).
Export controls on strategic metals (e.g., gallium, germanium restrictions in 2023) demonstrate geopolitical leverage.
Challenges: Environmental pressures, resource depletion risks, and growing international competition (e.g., U.S. Inflation Reduction Act) may reshape dynamics. However, China’s integrated ecosystem and strategic stockpiling ensure its central role in global metal supply chains through at least 2030.
