China’s dominance in the global market for critical minerals such as lithium, cobalt, nickel, and rare earths is not just due to the availability of deposits, but rather its refining capacity. According to panelists at the Washington Economic Festival, China’s ability to process these minerals into usable materials gives it a significant advantage over other countries.

While the raw materials are available worldwide, the process of refining them is extremely toxic and carries significant environmental risks. In China, however, there are no regulations or safety measures in place to prevent the government from exploiting this advantage. As a result, China has been able to establish a near-monopoly on the global market for critical minerals.

This is not just a matter of economic power, but also geopolitical influence. By controlling the supply chain for these essential materials, China can exert significant pressure on other countries and industries that rely on them. This has implications not only for the environment and human rights, but also for global security and stability.

The importance of critical minerals in modern technology cannot be overstated. They are used in everything from electric vehicles and renewable energy systems to smartphones and medical devices. As the global demand for these materials continues to grow, China’s dominance in their refining capacity will only increase in significance.