IEA says China's mining restrictions threaten global economic security

The International Energy Agency announced that China's controls on rare earth element exports are putting $6.5 trillion in annual global industrial production at risk. The agency stated that the increasing export restrictions directly threaten economic security.

Scraper SystemJuly 16, 2026, 08:03 PM

IEA says China's mining restrictions threaten global economic security

The International Energy Agency (IEA) announced that China's restrictions on rare earth element exports threaten global economic security. According to the agency's 'Global Critical Minerals Outlook 2026' report, these controls are jeopardizing $6.5 trillion in annual industrial production.

The report emphasized that the proliferation of export controls has turned supply concentration concerns into a direct economic security issue. It noted that the restrictions China initiated in April 2025 have forced some automotive companies to reduce or temporarily halt production.

A $6.5 trillion risk

The IEA stated that Beijing's controls on rare earth elements are putting industrial production outside China at risk. In October 2025, the scope of these restrictions was expanded, and although implementation was delayed by a year, the agency said that if fully enforced, $6.5 trillion in production would be at risk.

Market fluctuations and supply concentration

According to the report, base metal prices recovered in 2025 and early 2026 due to supply tightening. This trend was further exacerbated by new export restrictions imposed by major suppliers. The report noted that mineral prices fell 9 percent in 2025, ending consecutive years of growth.

The report pointed out that geographical concentration in mineral supply chains has increased, particularly in refining. Over the past two years, the largest refineries accounted for more than three-quarters of total refined supply growth. These include nickel refineries in Indonesia and other base metal refineries in China's energy sector.

EU efforts to reduce dependency

The European Union has announced various measures to reduce dependency in response to China's restrictions on rare metals and critical raw materials. Meanwhile, China's Ministry of Commerce on October 9 imposed new restrictions on the export of rare earth elements, as well as on the transfer of equipment or technology related to their production or processing, citing 'national security'.

Under the new regulation, exporters are now required to obtain an 'export license' from the ministry. Rare earth elements encompass 17 chemical elements, including neodymium, dysprosium, and lanthanum, and are used in the production of radars, missiles, fighter jets, electric vehicles, and super-strong magnets.

IEA says China's mining restrictions threaten global economic security