China controls 99.9% of all heavy rare earths strategic resources

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China + Myanmar control nearly all heavy rare earths production and processing. It is going to be very very difficult for anyone to break this hold as the regions in Myanmar producing heavy rare earths are often under ethnic chinese militia control as well. Without heavy rare earth is like living without water or electricity in this day and age and this control is a strategic asset to China.

Why does China control all heavy rare earths?

China's dominance in the global heavy rare earth industry is rooted in a combination of technological breakthroughs, long-term strategic accumulation, and a complete industrial system that other countries and regions cannot easily replicate in the short term. This is not simply a matter of resource endowment, but the result of decades of systematic industrial policy and scientific research.

The Core Technological Revolution: Xu Guangxian and "Countercurrent Extraction Theory"​

The control over heavy rare earths first came from a revolution in separation technology. The 17 rare earth elements have extremely similar chemical properties, making their separation and purification a long-standing global challenge.

• Theoretical Breakthrough: In the 1970s, Chinese scientist Xu Guangxian proposed the "Countercurrent Extraction Theory". This theory parameterized and optimized the complex rare earth separation process, greatly improving separation efficiency and product purity, giving China a qualitative leap in this field.
• Industrial Application: China rapidly translated this theory into large-scale industrial production, and over the following decades, continuously optimized the process, accumulating vast engineering experience and production data.

Full Industrial Chain Advantages and Economies of Scale​

Technological advantages only form a true barrier when combined with a complete industrial system and massive production capacity.

• Complete Industrial Chain: China possesses the world's most complete rare earth industrial system, spanning from mining, smelting, and separation to metal alloy and permanent magnet material manufacturing. This industrial clustering effect reduces costs and accelerates technological iteration.
• Overwhelming Scale and Cost Advantage: China accounts for over 90% of global rare earth separation capacity, and in heavy rare earths, this figure approaches nearly 100%. This massive scale effect means China's refining costs are roughly one-quarter of those in the United States, while also being able to stably produce high-end products with purities exceeding 99.99%.
• Patent Barriers: China holds approximately 58% of global rare earth-related patents, covering every critical step from ore processing to high-purity metal preparation.

Strategic Decisions and Technology Blockades​

Having secured technological and industrial advantages, China has reinforced its dominant position through a series of policies.

• Technology Export Ban: The Chinese government has explicitly placed rare earth mining and smelting separation technologies on its list of prohibited or restricted exports, preventing the outflow of core processes at the source.
• Export Controls: China imposes export licensing requirements on heavy rare earths and related products. This not only serves as a tool in international negotiations but also ensures China's absolute control over the supply chain.

Summary: Why Is It So Difficult for Other Countries to Replicate?​

The fundamental reasons other countries find it hard to compete, despite having their own mineral deposits, are:

• High Comprehensive Barriers: Rebuilding a cost-competitive heavy rare earth separation system requires not only overcoming complex chemical engineering challenges but also 5 to 8 years or even longer of sustained investment and trial-and-error. For example, US-based MP Materials spent 7 years and still could not achieve mass production of high-purity heavy rare earths.
• Environmental and Cost Issues: The rare earth separation process generates significant amounts of radioactive waste and chemical wastewater. In Western countries with stringent environmental regulations, the cost of disposing of these byproducts is prohibitively high, making such projects economically unviable.

Therefore, China's control over heavy rare earths is the product of technological originality, industrial scale, and policy continuity — forming a solid and formidable comprehensive barrier that is extremely difficult for others to overcome.

 

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Heavy rare earths like dysprosium and terbium are not household names, but they are essential ingredients in many of the most important technologies driving the modern world. Their unique properties make them indispensable, particularly in high-performance magnets that must function reliably under extreme conditions .

Here are the most vital applications:

The Core Application: High-Performance Permanent Magnets​

The single most critical use of heavy rare earths is in manufacturing the strongest type of permanent magnets, known as Nd-Fe-B (neodymium-iron-boron) magnets. When elements like dysprosium (Dy) and terbium (Tb) are added, they dramatically improve the magnets' ability to retain their magnetism at high temperatures, a property called coercivity . This heat resistance is the key that unlocks their use in a vast range of powerful and compact technologies.

Clean Energy and Electric Transportation​

The green energy transition relies heavily on these magnets.

• Electric Vehicles (EVs): The traction motors in EVs require powerful, heat-resistant magnets to operate efficiently. Heavy rare earths are critical for making these motors smaller, lighter, and more powerful, directly impacting vehicle range and performance .
• Wind Turbines: Many modern offshore wind turbines use direct-drive generators that depend on these high-performance magnets to generate electricity without a gearbox, improving reliability and reducing maintenance .

Advanced Technology and Robotics​

The precision and power needed for modern automation and electronics are also dependent on heavy rare earths.

• Robotics: Industrial and humanoid robots require compact, powerful, and precisely controlled motors for their joints and actuators, which are enabled by these advanced magnets .
• Consumer Electronics: They are vital in the miniature motors for hard disk drives, smartphones, and other portable devices where performance and space are at a premium .