CRITICAL MINERAL EXPLOITATION
China controls the majority of the global critical minerals refining, in addition to the majority of rare earth element (REE) production and refining. Critical minerals such as lithium are key to the green energy transition, while REEs have significant industrial and defense applications. A 2022 Brookings report estimated that the PRC refines 68 percent of nickel, 40 percent of copper, 59 percent of lithium, and 73 percent of cobalt. However, other countries make up the majority of lithium and cobalt mining. While China’s share of the global extraction of REEs has declined from a peak of 95 percent in 2010 to nearly 60 percent in 2019, the world is still significantly reliant on China for over 90 percent of REE processing and refining. The PRC’s control of these supply chains could grant it a competitive advantage in sustainable energy technologies such as lithium-ion battery production and secure critical supply lines for its defense industrial base and production of high-end weapons platforms.
| CHINA’S TOP CRUDE SUPPLIERS 2022 | ||
| Country | Volume (1,000 barrels per day) | Percentage of Imported Crude Oil |
| Saudi Arabia | 1,752 | 17 |
| Russia | 1,728 | 17 |
| Iraq | 1,111 | 11 |
| UAE | 858 | 8 |
| Oman | 789 | 8 |
| Malaysia | 715 | 7 |
| Kuwait | 667 | 7 |
| Angola | 603 | 6 |
| Brazil | 497 | 5 |
| Colombia | 173 | 2 |
| Others | 1,289 | 13 |
| Total | 10,182 | 101* |
| *Total does not equal 100 because figures have been rounded. | ||
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OFFICE OF THE SECRETARY OF DEFENSE
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China
