China holds an 84% market share of rare-earth elements (REEs), raising major concerns regarding supply chain concentration risk, according to a new report from Interos. Downloadable below, the report explores the prevalence of China rare-earth elements in the REE market and how geopolitical concerns could bring substantial disruption.
The country currently extracts 60% of all global REEs. It also refines 87% of the global supply. These elements are used in everything from computer chips, weapons systems for national defense, and electric cars, among many other uses.
This concentration of rare-earth elements in China creates potential crises for companies that rely on these elements as sanctions and geopolitical conflicts, among other disruptions, could make acquiring REEs incredibly difficult.
The Interos report lays out seven unique scenarios regarding REEs, China, and supply chain concentration risk that companies may face soon. The goal is to help companies who rely on REEs understand the risk concentration of this industry, think about possible contingency plans if western governments impose economic sanctions on China, and provide insights drawn from the Interos operational resilience platform.
Read more in the Interos report, which you can download here. Then learn more about how the Interos platform can help navigate the China rare-earth element supply chain by visiting interos.ai.