China Increases Rare Earth Metal Activity by 14% Through First Three Quarters of 2025

China significantly increased its mining and refining of metals including rare earth minerals by 14% year-over-year through the first three quarters of 2025, signaling continued investment in its dominance of the critical materials supply chain.

Data released today by China’s National Bureau of Statistics shows non-ferrous metal mining and dressing activity grew by 14.2%, while non-ferrous metal smelting and rolling activity increased by 14.6% through September compared to the same period last year. Rare earths are classified by China as non-ferrous metals. While the data doesn’t isolate the gains specifically attributable to rare earths, the overall increase reinforces China’s control over the industry – currently holding roughly 70% of rare earth mining, 90% of separation and processing, and 93% of magnet manufacturing. This control has significant implications for global technology and defense industries, which rely heavily on these materials.

The news comes ahead of a planned meeting between President Trump and Chinese counterpart Xi Jinping in South Korea on Thursday, where rare earth policies are expected to be discussed. Tensions rose earlier this month when Beijing announced strict export controls on materials containing even trace amounts of rare earths. However, US Treasury Secretary Scott Bessent expressed optimism yesterday, stating he expects China will revive purchases of US soybeans and delay implementing its rare-earth export licensing requirements by a year. “I believe we’ve reached a very substantial framework that will avoid [a tariff hike] and allow us to discuss that and many other things with the Chinese,” Bessent said Sunday morning on NBC’s “Meet the Press.” Investors are closely watching these developments, and can find more information about rare earth elements from the United States Geological Survey.

Despite the positive signals from trade negotiations, rare earth stocks, including MP Materials (MP), USA Rare Earth (USAR), and NioCorp Developments (NB), experienced declines this morning. Officials indicated further discussions are planned following the meeting to solidify the framework and address remaining concerns regarding trade and resource access; you can read more about the geopolitical implications of rare earth minerals here.