What are rare-earth magnets, and why does China dominate their supply?

Rare-earth magnets are powerful permanent magnets used in electric vehicles, humanoid robots, wind turbines, drones, and fighter jets. Neodymium and praseodymium provide magnetic strength; dysprosium and terbium help certain magnets withstand heat. In 2025, the world mined about 390,000 metric tons of rare-earth oxide equivalent, according to the USGS. China led with 270,000, followed by the US with 51,000, Australia with 29,000, and Myanmar with 22,000. These figures cover all rare earths, not just magnet elements. Africa matters too. Madagascar mined about 2,700 tons and Nigeria 1,500, according to the USGS. But mining is only the beginning. In 2024, China controlled 60% of magnet rare-earth mining, 91% of refining, and 94% of sintered permanent-magnet manufacturing, according to the IEA. The geopolitical weapon? Export controls. In April 2025, Beijing restricted exports of dysprosium, terbium, and other rare-earth products, threatening global manufacturing supply chains. The price shock? In 2026, dysprosium and terbium prices in Europe were around 5 times Chinese domestic prices, according to the IEA. My forecast: China still produces at least 85% of the world's sintered rare-earth permanent magnets in 2030. The US, Europe, Japan, and Australia will invest heavily to reduce their dependence.