CNRE(SH:600111) Sou Hu Cai Jing·2025-05-12 08:15Core Insights - The report titled "2025 Rare Earth Industry Chain Research - Sino-US-EU Supply Chain Game and Geopolitical Competition Leverage" analyzes the rare earth industry, highlighting China's dominance in global supply and the geopolitical tensions driving Western nations to diversify their supply chains [2][12]. Group 1: Overview of the Rare Earth Industry - Rare earth elements consist of 17 metallic chemical elements, categorized into light, medium, and heavy rare earths, and are crucial in high-tech industries [12][13]. - China holds the largest reserves and production capacity of rare earths globally, controlling approximately 70% of the world's production and 90% of refining capacity [12][28]. Group 2: Global Supply and Resource Distribution - As of 2024, global rare earth reserves exceed 90 million tons, with China accounting for 44 million tons, representing about 48% of the total [22][23]. - The global production of rare earths in 2024 is projected to reach 390,000 tons, with China producing 270,000 tons, maintaining a dominant market share of 69% [25][28]. Group 3: China's Resource Management and Industry Structure - China implements strict total control over rare earth mining and refining, with production quotas assigned to major state-owned enterprises [34][40]. - The restructuring of China's rare earth industry has led to the formation of four major groups, enhancing resource management and market concentration [37][38]. Group 4: Market Dynamics and Growth - The market for rare earth functional materials is expanding rapidly, with significant growth in sectors such as electric vehicles and renewable energy [12][44]. - From 2018 to 2023, the revenue from the rare earth refining and separation industry has increased, with the functional materials market also showing robust growth [2][44]. Group 5: Geopolitical Implications and Supply Chain Diversification - The geopolitical landscape is shifting, with Western nations seeking to reduce reliance on Chinese rare earths by developing alternative supply chains in countries like the US, Australia, and Canada [12][33]. - The US has invested over $439 million since 2020 to support domestic rare earth supply chains, aiming to establish a complete supply chain by 2030 [33].