Africa-Press – Tanzania. Efforts to diversify rare earth supply chains are not keeping pace with rising demand, leaving major industries vulnerable to disruptions, according to an International Energy Agency (IEA) report Wednesday.
It said demand for magnet rare earths — including neodymium, praseodymium, dysprosium and terbium — has doubled since 2015 and is projected to rise by more than 30% by 2030.
The materials are used in technologies such as electric vehicles, AI data centers, robotics and defense systems.
“Rare earth elements are indispensable to many of the technologies shaping the Age of Electricity and our increasingly digitalized economies, yet their supply chains remain among the most concentrated of all critical minerals,” said IEA Executive Director Fatih Birol.
The report said China accounts for around 60% of global mined production of magnet rare earths, more than 90% of refining and nearly 95% of permanent magnet production.
It added that export controls introduced by China in 2025 caused short-term disruptions for some manufacturers outside China, and highlighted the fragility of global supply chains. If the controls were fully implemented, up to $6.5 trillion in annual economic activity outside China could be at risk, according to the IEA.
Despite growing awareness, current and announced projects outside China remain insufficient. By 2035, they are expected to cover only about half of mining needs, a quarter of refining demand and less than one-fifth of magnet demand outside China.
The IEA said $60 billion in investment will be needed in the next decade to build more diversified supply chains, especially in refining and magnet manufacturing, which remain key bottlenecks.
It added that recycling and innovation could help ease supply pressures, while stronger international cooperation would be essential to build more secure and resilient rare earth supply networks.
