Critical minerals—and the soaring demand for them—are a key challenge for policymakers and analysts around the world. The factors driving that demand, especially energy transition technologies like electric vehicle batteries, are usually the focus of discussion. But the story of critical minerals is two-sided; it features both demand and supply. 

Nowhere is China’s critical mineral dominance greater than in rare earth supply chains. In 2022, the US government estimated that China controlled “nearly 60 percent of mined production, over 85 percent of processing capacity, and over 90 percent of permanent magnet production.”

The great power competition underway between the United States and China has a ripple effect in each nation’s neighborhood. As the United States prepares for possible conflict seven thousand miles away in the Taiwan Strait, China is expanding its economic influence in Latin America.