IEA: $60 Billion Needed Over Next 10 Years to Meet Global Rare Earth Magnet Demand
China Reveals Its Mineral Resource Base, Ranking First in 31 Categories
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According to an IEA report, developing a fully diversified supply chain for rare earth elements requires substantial investment. For rare earth magnets specifically, approximately $60 billion will be needed over the next decade.
The agency stated: "Developing a fully diversified rare earth element supply chain requires significant increased investment. To meet demand for rare earth magnets beyond major suppliers, about $6 billion in investment from both public and private sectors will be required over the next 10 years."
The agency’s data shows that rare earth elements are highly concentrated geographically across all stages of the value chain. In 2024, China accounted for 60% of global rare earth magnet production. Therefore, China's export restrictions on rare earths in 2025 have exposed the risks associated with such high supply concentration in one source country.
Rare earth magnets are powerful permanent magnets made from alloys of rare earth elements. Compared to ordinary magnets, they are more compact in structure and exhibit stronger resistance to demagnetization. Their applications include electronic devices, automobiles, medical equipment, missile systems, satellites, wind turbines, and generators.
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According to Xinhua News Agency, on April 29, China’s Ministry of Natural Resources released the latest national mineral resource inventory. China ranks first globally in reserves of 14 minerals, including rare earths, tungsten, tin, molybdenum, antimony, gallium, germanium, indium, fluorite, and graphite. In 2025, China is expected to lead the world in output of 17 minerals, including coal, vanadium, titanium, zinc, rare earths, tungsten, tin, molybdenum, antimony, gallium, indium, gold, and tellurium.
The report notes that China currently maintains the world’s largest scale in mineral production and smelting processing. In 2025, the national mining industry’s output value is projected at around 32.7 trillion yuan, accounting for over 23% of GDP. The significant increase in resource reserves has laid a solid foundation for achieving self-reliance and control over resources.
China is not only a major producer of mineral resources but also the dominant supplier and key driver in global refining and processing industries. This ensures stability in China’s industrial chains and supports emerging industries, while also safeguarding global economic and social well-being.
Source: sputniknews
Original: toutiao.com/article/1863838835364937/
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