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How China's rare earths monopoly threatens major Fortune 500 companies: 'Its the biggest gun they have to our heads'


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Published in Business and Finance on Wednesday, May 28th 2025 at 12:00 GMT by Fortune   Print publication without navigation

  • Forget dolls and grills, it's the crucial 'rare earth' minerals China supplies the U.S. that are most at risk as the tariff war rages.

China's dominance in the rare earths market poses a significant threat to Fortune 500 companies, as highlighted in a recent Fortune article. The country controls over 80% of the global supply of these critical minerals, which are essential for manufacturing high-tech products like smartphones, electric vehicles, and military equipment. The article discusses how China's potential to restrict exports could severely disrupt supply chains and increase costs for major corporations. Industry leaders express concerns over the "biggest gun" China has to their heads, emphasizing the strategic vulnerability this monopoly creates. The piece also explores potential mitigation strategies, such as diversifying supply sources and investing in recycling technologies, but acknowledges the challenges and long timelines involved in reducing dependency on Chinese rare earths.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/27/how-chinas-rare-earths-monopoly-threatens-fortune-500-companies-its-the-biggest-gun-they-have-to-our-heads/ ]

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