📈 Global Rare Earth Dominance: Strategic Risks for Sri Lanka's Tech Ambitions

The latest analysis highlights the intensifying battle between the US and China over critical minerals, a shift with significant implications for global supply chains and emerging ICT/BPM hubs like Sri Lanka. • Global Market Share: China currently controls 65% of global mining capacity and a dominant 91% of the refining process for rare earth oxides. • Downstream Manufacturing: China produces 94% of the world’s sintered magnets, which are essential components for consumer electronics, electric vehicles (EVs), and renewable energy (wind turbines). • Strategic Vulnerabilities: Western nations face a 4–5 year lag in establishing domestic refining capacity due to high labor costs, energy inputs, and environmental regulations. • Economic Outlook: The shift toward "friend-shoring" and supply chain diversification is expected to accelerate. For Sri Lanka, this underscores the importance of the ICT/BPM and electronics sectors aligning with trusted global partners to mitigate risks associated with mineral monopolies. • Future Drivers: Technological innovation in processing and government-backed private sector agility are identified as the only viable paths to breaking the current supply chain grip.