China's rare earth industry has critical weakness, researchers warn

China's global dominance in rare earth mining, refining, and exports has long been considered a strategic advantage. However, a recent study by Chinese researchers highlights a significant vulnerability within the nation's own industry.

The research, published in the Bulletin of the Chinese Academy of Sciences, shifts focus from resource reserves and production capacity to the mastery of core technologies in high-end rare earth functional materials. The study's authors, from the University of Science and Technology of China, concluded that crucial patents for these advanced materials are largely held by Japan and the United States.

These downstream products, such as permanent magnets, catalysts, and polishing materials, are derived from processed rare earths. They account for over 80 percent of rare earth-related patents globally and represent the most commercially valuable applications within the industry. The findings suggest that despite controlling much of the raw supply chain, China's influence in the high-value segments of the rare earth market may be limited.

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China is not in a leading position in mastering key core technologies in certain fields.