China’s rare earths El Dorado gives strategic edge

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In southern China, under layers of red soil, sits one of the most powerful resources on Earth. This is Ganzhou, a quiet-looking region hiding one of the world’s largest rare earth mining centers.

These rare earths are not rare in use. They power smartphones, electric cars, fighter jets, missiles, and lasers. And China controls most of them.

The hills of Jiangxi province hold the heart of this industry. Mining here runs day and night, guarded, controlled, and mostly closed off to the outside world. Media access is rare. When journalists do visit, they are watched closely.

Last month, AFP reporters were allowed into the area — but they weren’t alone. Minders followed them everywhere and refused to give names. Mining companies would not agree to interviews.

Locals say the work never stops.

“It’s busy 24 hours a day, seven days a week,” said one resident in the town of Banshi.

Nearby, construction crews were already starting work on a massive new industrial park, filled with rare earth processing plants.

This didn’t happen by accident.

For decades, Beijing has pushed hard to build strength in rare earths. That long-term plan is now paying off. Earlier this year, China eased rare earth export controls, helping cool trade tensions with the United States.

But the message was clear.

China still holds the upper hand.

The United States is now scrambling to build new supply chains, but experts warn it will take years, not months. Europe is also getting worried.

This month, the European Union announced new steps to reduce its dependence on China. The EU plans to invest nearly 3 billion euros into mining, refining, and recycling critical materials. It also wants to create a new hub called the European Centre for Critical Raw Materials.

Still, catching up won’t be easy.

Back in 1992, former Chinese leader Deng Xiaoping summed it up perfectly:

“The Middle East has oil. China has rare earths.”

China holds the world’s largest reserves and dominates both processing and technology in this field.

The country’s rare earth industry is built around two main regions.

One is Bayan Obo in Inner Mongolia, near the Gobi Desert. This area produces “light” rare earths, used mostly in everyday magnets.

The other — and more valuable — region is Ganzhou.

Ganzhou focuses on “heavy” rare earths. These are harder to mine, but far more important. They are used in heat-resistant magnets, jet engines, missile guidance systems, and advanced weapons.

Elements like dysprosium, yttrium, and terbium are pulled from the rugged hills around the city.

In Longnan district alone, nearly 900 mining and processing sites have been recorded. That’s almost a third of Jiangxi’s total. Nearby, rows of large processing plants stretch across industrial zones.

These rare earths take millions of years to form. Rain slowly breaks down rock, pushing valuable elements closer to the surface. Jiangxi’s weather, soil, and stone make it the perfect place for this process.

But mining hasn’t always been clean.

In the past, some methods caused massive damage. One technique, known as “moving mountains,” involved cutting down trees, clearing land, and stripping away soil — leaving long-term scars.

Chinese authorities began cracking down in the early 2010s. Illegal mining has dropped sharply. Rural areas now display warning signs, and some even offer cash rewards for reporting unlicensed operations.

Today, the industry is mostly controlled by two massive state-owned companies.

On a road in Ganzhou known as “Rare Earth Avenue,” workers are rushing to finish a huge new headquarters for one of them — China Rare Earth Group.

Yet the land still remembers the past.

Across the hills, patches of bare red earth remain visible. In some places, plants have struggled to grow back.

These scars tell the story of how China built its rare earth dominance — slowly, forcefully, and with long-lasting impact.

And for the rest of the world, the lesson is clear:
China’s grip on rare earths wasn’t built overnight — and it won’t be broken quickly either.