The red soil of southern China contains rare earth minerals, forming one of the country’s most important strengths, and they are exploited in complete secrecy. The hills of Jiangxi province hold the majority of China’s mines for these mineral materials, which have become indispensable in the manufacture of smartphones, military aircraft, electric vehicles, and wind turbines, for example.
In Ganzhou, the center of these activities, the finishing touches are being put on the headquarters of China Rare Earth Group, one of the two state giants tasked with managing these resources.
The building is located on a street named “Rare Earth Avenue.” However, secrecy shrouds this booming strategic sector. Reporters were constantly followed by unknown men who tracked their movements while preparing this report. Access to mines and factories is heavily restricted, and companies did not agree to any interviews.
Increase in rare earth exploration sites
The sector is experiencing significant growth, with the number of rare earth exploration sites in China rising from 117 in 2010 to 3,085 today, according to the U.S. Geological Survey (USGS).
Residents who agreed to speak confirmed that the activities are very intense. One resident of the city of Panxi, where an industrial complex is expected to include new processing facilities, said: “It’s a round-the-clock, round-the-week frenzy.”
In 1992, leader Deng Xiaoping emphasized the strategic importance of these resources, saying: “The Middle East has oil, and China has rare earths.”
Confronting U.S. Tariffs
China leverages its reserve of these minerals, the largest of its kind in the world, to dominate processing and innovation in this field. It uses this precious treasure to counter the additional tariffs imposed by the administration of U.S. President Donald Trump.
China alarmed the world by imposing restrictions on exports of rare earths and related technologies, prompting the U.S. administration to review its tariff increases, while the United States is desperately searching for alternative supply sources.
The European Union, which is heavily affected by the Chinese restrictions, announced the allocation of three billion euros to finance projects related to the extraction, refining, and recycling of rare earths and critical raw materials.
Everything about the world of rare earths in China
Rare earths possess magnetic capabilities used in several fields. This industry is mainly concentrated in two regions in China: The first is the mining area of Bayan Obo in Inner Mongolia (northern China), rich in so-called “light” rare earths, used particularly in magnets for common everyday items.
The second region is located around Ganzhou and holds what are known as “heavy” rare earths, which are typically more difficult to extract but more valuable, as they are used in heat-resistant magnets, fighter jet engines, missile guidance systems, and lasers.
The rugged hills surrounding the city contain chemicals in high demand, particularly dysprosium, yttrium, and terbium.
It takes millions of years for heavy rare earths to form. The geology and heavy rainfall make Jiangxi an ideal location for the formation of these elements. Extraction methods have evolved over time, and authorities have been working to regulate the most dangerous ones for about 15 years.
Jiangxi province
Jiangxi province, located in southeastern China, is historically significant as the cradle of the Chinese Communist Revolution, having been the starting point of the Long March in 1934. It is also renowned for its ancient porcelain production centered in Jingdezhen, a city known as the “Porcelain Capital” for over a millennium. The province’s landscape is dominated by the scenic mountains and cultural sites around Mount Lu (Lushan).
China
China is one of the world’s oldest continuous civilizations, with a recorded history spanning over four millennia. It is home to numerous UNESCO World Heritage sites, such as the Great Wall and the Forbidden City, which reflect its long imperial past and profound cultural achievements.
Ganzhou
Ganzhou is a historic city in southern Jiangxi Province, China, known for its significant role as a cultural and transportation hub along the ancient Gan River. It boasts a history spanning over 2,200 years, with well-preserved sites like the ancient city wall from the Song Dynasty and the Yugu Platform, associated with the renowned Song poet Xin Qiji.
Rare Earth Avenue
Rare Earth Avenue is a street in the Baotou Rare Earth Hi-tech Industrial Development Zone in Inner Mongolia, China, named for the region’s status as a global center of rare earth element production and processing. Its history is tied to the late 20th-century development of China’s rare earth industry, which transformed Baotou from a steel town into a strategic hub for these critical minerals.
Panxi
Panxi is a region in southwestern China, historically significant as part of the ancient Tea Horse Road trade route that connected China with Tibet and Southeast Asia. Today, it is known for its rich ethnic diversity, particularly the Yi and Bai peoples, and its scenic landscapes of mountains and river valleys.
Middle East
The Middle East is a transcontinental region centered on Western Asia and parts of North Africa, historically known as the cradle of civilization where some of the world’s earliest human societies and major religions emerged. It has been a central crossroads for trade, culture, and empires for millennia, from ancient Mesopotamia and Persia to the Byzantine and Ottoman empires. In the modern era, its vast petroleum reserves have made it a strategically vital area in global geopolitics.
U.S.
The United States is a federal republic founded in 1776 after declaring independence from Great Britain. Its history includes westward expansion, a civil war over slavery, and its emergence as a global superpower in the 20th century.
United States
The United States is a federal republic founded in 1776 after declaring independence from Great Britain, with its modern government established by the Constitution in 1789. Its history encompasses westward expansion, the Civil War, industrialization, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse population, democratic institutions, and significant cultural influence worldwide.
European Union
The European Union (EU) is a political and economic union of 27 European countries, formally established in 1993 by the Maastricht Treaty. It evolved from earlier post-World War II economic cooperations, most notably the European Coal and Steel Community founded in 1951, with the core aim of fostering peace, stability, and shared prosperity through integration.
Bayan Obo
Bayan Obo, located in Inner Mongolia, China, is the world’s largest rare-earth element deposit and a significant source of iron and niobium. It was discovered in 1927 and has been mined intensively since the 1950s, becoming crucial to global high-tech manufacturing. The site’s history is deeply tied to China’s industrial development and its current dominance in the rare-earth market.
Inner Mongolia
Inner Mongolia is an autonomous region of northern China, historically inhabited by Mongol ethnic groups and known for its vast grasslands and nomadic traditions. It was established as an autonomous region in 1947, following periods of rule under various dynasties and integration into the Qing Empire. The area remains a significant center of Mongolian culture within China, balancing traditional practices with modern development.
