China and Turkey Strengthen Rare Earth Cooperation Amid Growing Global Demand

Strategic Partnership to Secure Key Materials for Energy Transition
China and Turkey have taken a significant step to secure their positions in the global rare earth market by signing a preliminary agreement to jointly develop rare earth resources. This move comes as demand for rare earth elements (REEs) surges, particularly in industries like electric vehicles (EVs), renewable energy, and high-tech manufacturing. The partnership signals both countries’ strategic alignment to ensure a reliable supply of critical materials, which are essential for technologies driving the global energy transition.

Turkey’s Expanding Rare Earth Potential
Turkey’s Discovery of Vast Rare Earth Deposits Enhances Global Standing
Turkey is rapidly emerging as a major player in the rare earth sector, with the discovery of what is claimed to be the world’s second-largest rare earth deposit in Eskisehir province. This deposit, estimated at 694 million tons, positions Turkey as a key source of rare earths, making it critical for global supply chains. Plans are already in place to construct rare earth separation and processing facilities capable of extracting 570,000 tons of REEs annually, further boosting Turkey’s role in meeting the rising demand for these minerals.

China’s Continued Dominance in the Rare Earth Sector
China Remains Global Leader in REE Production and Refining
China continues to dominate the rare earth market, with 44 million tons of rare earth reserves—accounting for 38% of global reserves—and nearly 70% of global production and refining. This stronghold allows China to remain the world’s primary supplier of rare earth elements. However, with increasing geopolitical tensions and concerns over supply chain security, the new agreement with Turkey ensures a more diversified supply, reducing reliance solely on China’s reserves. This strategic partnership aligns with both nations’ goals to secure access to these vital minerals amidst growing global demand.

Global Demand for Rare Earths: A Critical Resource for Clean Technology
Rising Need for Rare Earths in Electric Vehicles and Green Technologies
Rare earths, especially NdFeB magnets, are integral to the production of electric vehicles (EVs), wind turbines, and industrial robots. As the EV industry grows, the demand for rare earths is expected to rise dramatically, driving investments and partnerships in global production. Chinese EV giant BYD, for example, has expanded its operations internationally and partnered with Turkey’s industry ministry to produce 150,000 EVs annually, contributing to global electrification efforts. This partnership highlights the intersection of clean technology and critical mineral demand, underscoring the importance of rare earths in the renewable energy transition.

Diversification of Rare Earth Supply Chains: A Geopolitical Imperative
Western Nations and Private Companies Seek Alternatives to China’s Dominance
Geopolitical tensions have prompted Western nations to diversify their supply chains for rare earths, moving away from heavy reliance on China. Countries like the U.S. and Australia are investing in alternative production facilities to reduce their vulnerability. Companies such as Lynas Rare Earths (Australia) and MP Materials (U.S.) are focusing on the extraction and processing of heavy rare earths (HREs). The collaboration between China and Turkey represents a significant development in securing a more diversified and stable supply of rare earth elements, crucial for maintaining the momentum of global green technologies.