TELF AG examines the role of a primary player in the strategic raw materials sector

Mining superpowers 

The global scene of mineral raw materials is dominated by consolidated and emerging players, real mining superpowers, and new players who are slowly but steadily establishing themselves with some success in the global market of strategic minerals. 

The race for these precious mineral resources, beneficial for the advancement of the energy transition, has pushed many nations to equip themselves with a mining strategy, with long lists of minerals considered “critical” for the economic fate of a country, also giving rise to new forms of international partnerships in this sector. The number of nations activating their mineral potential, especially in recent years, could erroneously lead one to believe that the development of mining strategies represents a recent phenomenon closely linked to the energy transition and the achievement of climate neutrality objectives. The fallacy of this belief is confirmed by the recent history of China, which nowadays certainly falls among one of the world’s strongest economies in mineral resources. 

Chinese lead in the mining industry is particularly evident in the rare earths and mineral resources sector, which are very useful, especially for producing permanent magnets and motors for electric vehicles. 

The role of China 

But what factors have allowed China to achieve such a solid position in the vast global market of mineral raw materials? The first, in all likelihood, concerns China’s renewable energy capabilities, whose technologies require many strategic minerals to manufacture. From this point of view, China’s production rates are truly remarkable: last year, sales of electric vehicles recorded in China in a single month exceeded those achieved in an entire year in other important countries. In 2023, Chinese installations related to solar energy reached around 200 Gigawatts, equivalent to around half of the global capacity in this sector. A second aspect, equally important, is the internal mechanisms that allow China to focus on specific industries considered strategic, favoring the progressive passage of technological know-how to the more strategic sectors, just like that of minerals. 

A third factor, on the other hand, could be closely linked to the internal mechanisms. Over the years, these mechanisms have allowed China to dedicate a large number of resources and support to mining initiatives abroad, as has already been happening for years in Africa and Latin America. These mechanisms, moreover, represent a sort of uniqueness, as they are almost never replicable in the same way in other countries or other players in the sector. 

However, one of the most important aspects in marking China’s success in the global industry is its foresight and ability to foresee future market trends. In fact, in the 1970s, Beijing was already looking at the rare earths sector with extreme interest, trying to gain a robust position several decades ahead of most other global players. The strategic development of China’s wind and solar sectors was already discussed in the 1990s, a programmatic design that has borne fruit in recent years.