THIS CONTENT IS BROUGHT TO YOU BY Fridtjof Nansen Institute - READ MORE
Where do the metals in your electric car come from?
China’s control of critical minerals is influencing the global shift to green energy – but at what cost?
Published
The battery in your electric car and the magnets in wind turbines rely on critical minerals controlled by China.
This gives China a powerful role in the green transition, but it also creates challenges for the rest of the world.
China’s role in critical minerals
China has long been the global leader in producing rare earth elements – a group of 17 metals essential for technologies like electric vehicle motors, wind turbines, and mobile phones.
"China’s dominance gives it a strategic advantage but also exposes vulnerabilities for other nations," says Gørild Heggelund.
She is a research professor at the Fridtjof Nansen Institute.
While China controls over 60 per cent of global rare earth production, the country is heavily dependent on imports for certain materials, such as cobalt and lithium for batteries.
"Almost all the cobalt used in China comes from the Democratic Republic of Congo. This makes their supply chains vulnerable," Heggelund explains.
Still, China has secured its position by dominating the processing phase. This is the step where raw materials are turned into usable components.
"China’s focus on processing has allowed it to maintain control without owning all the mines," she says.
Nevertheless, China has become dependent on imports for parts of its supply due to domestic policies that limit mining and processing to converse resources and reduce pollution.
Rivalry between the USA and China
The competition between the USA and China extends to critical minerals, turning them into a key battleground in the race for green technology.
"China’s strategy of building entire value chains in renewable energy is not new. It started in the 1990s," says Iselin Stensdal.
She researches China at the Fridtjof Nansen Institute.
China’s access to raw materials has been a cornerstone of its leadership in solar panels, lithium batteries, and electric vehicles.
While the USA is catching up, China remains ahead in many key technologies.
Recent political tensions have escalated. China recently banned the export of three critical minerals to the USA. This move was in response to American efforts to restrict Chinese access to advanced technology, citing national security concerns.
"The rivalry between the USA and China is marked by a retaliatory approach, with both nations responding to each other’s actions through countermeasures," explains Stensdal.
What it means for the world
China’s dominance presents a dilemma for nations worldwide.
While the world depends on China for critical materials, this reliance also creates risks.
Heggelund leads a project aimed at helping nations like Norway strike a balance: Reducing dependency on China while building sustainable and competitive supply chains.
‘We can't completely decouple from China, but we can diversify our sources and learn from their strategies,’ she concludes.
This content is paid for and presented by Fridtjof Nansen Institute
This content is created by Fridtjof Nansen Institute's communication staff, who use this platform to communicate science and share results from research with the public. The Fridtjof Nansen Institute is one of more than 80 owners of ScienceNorway.no. Read more.
More content from Fridtjof Nansen Institute:
-
Power struggle in the Arctic Council: Greenland demands a leading role
-
War in the Arctic? Researchers debunk three myths about the High North
-
Wind power development has varied significantly among Nordic countries
-
Fiction and reality in Russian politics
-
100 years have passed since Fridtjof Nansen received the Nobel Peace Prize. Would he have been given it today?
-
Norway has the strictest aquaculture regulations in the world. Will other countries follow suit?
