# Critical Minerals

China dominates global critical mineral refinement, controlling approximately 70% of rare earth processing and significant shares of other semiconductor-essential materials.

**Measure:** Net Refinement Capacity for Semiconductor-Critical Minerals

**US & Allies Score:** 4.0/10  
**China Score:** 8.0/10  
**Leader:** China

## Key Metrics

- **Mining share:** Mining Share (%) = (Country mine production / Global mine production) × 100
- **Refining share:** Refining Share (%) = (Country refined output / Global refined output) × 100

## What matters in this layer

AI hardware pulls demand from a narrow set of inputs: rare earth elements for magnets, gallium and germanium for compound semiconductors, cobalt and lithium for storage and power systems, and high-purity copper and aluminum for electrical and thermal management.

### Concentration risk

Processing and separation steps concentrate in a small number of jurisdictions. This makes export controls and permitting delays systemically important.

### Spec and quality

Semiconductor-grade materials require stringent purity and consistency. The constraint is often qualification and process integration, not only tonnage.

## Recent Developments

### China Dominates Rare Earth Processing
*1 day ago | Supply Chain*

China controls approximately 70% of global rare earth element processing capacity, creating a critical dependency for advanced semiconductor and AI hardware manufacturing.

### US Announces Lithium Processing Initiative
*3 days ago | Policy*

The Department of Energy has announced $2.8 billion in funding for domestic lithium processing facilities, aiming to reduce dependence on Chinese refinement operations.

### Australia-US Partnership on Critical Minerals
*1 week ago | Partnerships*

A new bilateral agreement between Australia and the United States aims to establish secure supply chains for critical minerals, including lithium, cobalt, and rare earth elements.

### China Restricts Gallium and Germanium Exports
*2 weeks ago | Trade*

Beijing has implemented export controls on gallium and germanium, two materials essential for advanced chip production. This move is seen as retaliation for US semiconductor restrictions.

### Strategic Stockpile Expansion Planned
*1 month ago | Policy*

Congress is considering legislation to expand the National Defense Stockpile of critical minerals, including gallium, germanium, and other elements essential for advanced chip production.