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Key Insights into China’s Dominance in Global Refining Capacity in 2025
1. China Controls Nearly the Entire Global Gallium Supply — 99%
China’s hold on gallium is virtually unchallenged, making it the world’s primary supplier with 99% of the refining capacity. Gallium, essential for semiconductors and LED technology, underscores China’s significant influence over high-tech manufacturing sectors. This near-monopoly raises concerns about global supply chain vulnerabilities, especially as demand for gallium continues to grow in electronics and military applications.
2. Massive Share in Graphite Production — 95%
Graphite, a critical material for battery electrodes and advanced steel products, sees China refining the lion’s share — 95%. This dominance allows China to maintain considerable control over the EV battery market, which heavily relies on high-quality graphite. Disruptions in this supply chain could affect global production levels of electric vehicles and renewable energy storage systems.
3. Manganese as a Chinese Stronghold — 95%
Manganese, vital for steelmaking and battery components, is nearly entirely refined in China (95%). With the global push toward sustainable infrastructure and renewable energy, manganese is becoming increasingly vital. China’s predominance could influence worldwide pricing and availability, impacting sectors from construction to electric vehicle manufacturing.
4. Rare Earth Elements — 92%
Rare earths are essential for everything from smartphones and electric motors to missile technology. China’s control over 92% of global rare earth refining capacity solidifies its strategic position in high-tech industries. Countries dependent on these materials are actively seeking to diversify sources, but China’s dominance remains a critical market factor.
5. Cobalt Refining — 77%
Cobalt’s role in rechargeable batteries points to China’s significant market share of 77% in refining capacity. Given the surge in EV adoption, cobalt’s supply chain has become a geopolitical concern. China’s control over cobalt refining allows it to influence global battery supply chains substantially.
6. Phosphorus Production — 73%
Essential for fertilizers and various industrial applications, phosphorus is predominantly refined in China (73%). As global agriculture expands to meet rising food demand, China’s control over phosphorus supplies could impact food security and agricultural prices worldwide.
7. Lithium Refining — 70%
Lithium is at the heart of the EV revolution, with China refining about 70% of global lithium. This significant share underpins the country’s leadership in battery manufacturing, but also raises worries about resource dependency and the need for diversified supply chains as demand skyrockets.
8. Titanium Processing — 69%
Titanium, valued for its strength-to-weight ratio and corrosion resistance, is primarily refined in China (69%). Its applications span aerospace, defense, and medical industries. China’s dominance ensures its influence over global titanium markets is unlikely to wane soon.
9. Copper Refining — 44%
Copper, essential for electrical wiring and electronic components, sees nearly half of its refining capacity located in China (44%). Copper’s role in renewable energy infrastructure makes this capacity particularly strategic amid rising global investments in green technology.
10. Nickel Refining — 34%
Despite a lower share compared to other critical metals, China refines about 34% of the world’s nickel, vital for stainless steel and battery manufacturing. As the demand for electric vehicles expands, China’s refining capacity for nickel may become more prominent in shaping supply chains.
Implications for the Global Market
China’s overwhelming share in refining capacity across these critical materials emphasizes its strategic advantage in the high-tech, energy, and defense sectors. As global dependencies on these resources deepen, nations worldwide are actively exploring diversification strategies—be it investing in domestic mining, forming new trade agreements, or developing alternative materials. The ongoing geopolitical tensions highlight the importance of resilient supply chains, especially in critical materials where China commands leadership.
Conclusion
China’s dominance in refining capacity across these vital sectors is a defining feature of the global resource landscape in 2025. While this consolidation offers economic efficiencies, it also necessitates careful planning among importing countries to mitigate risks associated with supply disruptions. The world’s reliance on China in these strategic materials underscores the importance of international cooperation and innovation to foster a more resilient and diversified resource economy.
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