Is China’s critical mineral refining network the hidden backbone of AI, EV, defence?

China is marking its footprint as the world's leading processor of critical minerals, extending its influence well beyond mining into the refining stage, which highlights modern technologies. The country currently dominates refined production for 19 of the world's 20 key critical minerals, including gallium, graphite, rare earths and lithium that are driving growth across the sectors of electric vehicle (EV), artificial intelligence (AI) and defence, amongst others. 

China’s refining dominance is especially manifested in battery and electrification supply chains. It accounts for nearly 96 per cent of global refined graphite production and 95 per cent of manganese refining capacity, both essential for EV batteries and energy storage systems.  

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Moreover, the country processes around 91 per cent of global rare earth exploration and production, which is widely used in permanent magnets for EVs and wind turbines.

China's influence also extends into the rapidly spreading base of AI and semiconductor sectors. It is a key refining leader of several strategic critical minerals, such as gallium, silicon, germanium and indium. All of these critical minerals play a vital role in data centre infrastructure, fibre optics, semiconductors, and power electronics.

Additionally, the nation maintains a strong position in refining minerals vital to aerospace, defence and heavy industrial applications. Some of these are molybdenum, titanium, zirconium, tungsten, and vanadium, used for manufacturing military equipment, industrial machinery, advanced alloys and jet engines.

As the demand for clean energy, digital technologies and defence equipment gains momentum on the global platform, China's broad-based refining network ascends to secure a more prominent spotlight for shaping international critical minerals supply chains.

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