Breaking: Goldman Sachs Says Decade Needed to Challenge China's Rare Earth Dominance

Goldman Sachs reports it could take 10+ years for the West to build a supply chain rivaling China's stranglehold on rare earth metals. Discover the implications for tech, defense, and the global economy.

Joyce Idanmuze

Oct 29, 2025 - 10:01

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Breaking: Goldman Sachs Says Decade Needed to Challenge China's Rare Earth Dominance

China's grip on rare earths is so strong that it could take the West a decade to challenge the East Asian giant's dominance over the critical minerals, according to Goldman Sachs.

By Joyce Idanmuze

The West may need a decade to loosen China's iron grip on rare earths, according to Goldman Sachs.
Beijing's control of 92% of refining and 98% of magnet production gives it powerful leverage in global trade.
The West's push to rebuild rare-earth supply chains is lagging despite the metals' strategic importance.

China’s overwhelming control of the global rare earth industry could take Western nations up to a decade to meaningfully reduce, according to a new analysis by Goldman Sachs.

Daan Struyven, Co-Head of Global Commodities Research at Goldman Sachs, stated in a recent podcast that China currently refines about 92% of the world’s rare earth elements and produces 98% of the high-strength magnetsderived from them. This near-monopoly gives Beijing significant influence over global supply chains, trade negotiations, and the broader clean energy transition.

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“China’s dominance is truly extraordinary,” Struyven observed, noting that efforts by the United States, Japan, and their allies to diversify supply remain far behind China’s established infrastructure.

Rare earth elements, 17 strategically important metals essential for defense systems, electric vehicles, and advanced semiconductors that have become one of the most geopolitically sensitive resources in the modern economy. Despite their importance, the market’s overall value remains relatively small, approximately 33 times lower than copper.

Western governments have committed billions toward rebuilding domestic rare earth mining and processing capabilities. However, Goldman Sachs warns that it will take roughly 10 years to develop new mines and five years to construct modern refineries, making short-term independence unrealistic.

The issue is also expected to surface during ongoing diplomatic engagements between Washington and Beijing, as China recently expanded export restrictions on critical minerals, tightening global supply ahead of renewed trade negotiations.

“The rare earth question will remain central to global industrial strategy for years to come,” Struyven concluded.

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Joyce Idanmuze Joyce Idanmuze is a seasoned Private Investigator and Fraud Analyst at KREENO Debt Recovery and Private Investigation Agency. With a strong commitment to integrity in business reporting, she specializes in uncovering financial fraud, debt recovery, and corporate investigations. Joyce is passionate about promoting ethical business practices and ensuring accountability in financial transactions.