Metals & Minerals: Playing a Key Role in China's Five-Year Plan

---

Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

---

Summary

China's new five-year plan indicates the world's dominant miner and processor of minerals is looking to gain even more control.

---

China's Five-Year Approach to Metals & Minerals

China recently announced its new five-year plan, with the world's dominant miner and processor of minerals looking to gain even more control.

While statistics on the country's control over mining and minerals vary, the International Energy Agency (IEA) notes China is the world's top lithium producer and processer--handling approximately 60-70% of the world's refining capacity--and the top producer/consumer of gold and coal. It also controls 70% of global rare earth mining and 90+% of global rare earths processing.

The plan's text highlights the country's approach, looking to "continuously enhance competitive advantages in rare earths, rare metals, and superhard materials, and strengthen the high-quality and efficient comprehensive utilization of important strategic minerals."

"We will strengthen the exploration, development, and reserves of strategic mineral resources, implement a new round of strategic action for breakthroughs in mineral exploration, coordinate and strengthen product, capacity, and production area reserves, promote the construction of bulk commodity storage and transportation bases, and improve the monitoring, early warning, and emergency supply guarantee capabilities for strategic mineral resource security risks."

That could include mining two resources China relies heavily on imports for: copper and iron ore.

Industrial Info is tracking $290 billion worth of active and planned mining projects across China, with about 60% of the spend attributed to underground and surface mining of bituminous and lignite coal as well as copper and iron ore. About 30% of the overall spend is attributed to projects under construction.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can access a full list of the mining projects.

China buys about three quarters of global seaborne iron ore, and customs data released March 10 shows arrivals in the first two months of the year were up 10% year-over-year.

News reporting indicates the iron ore is not being consumed by steel mills, but is being stockpiled.

China Highlights Leading Position in Rare Earths

While rare earths were always part of the country's strategic plans, this was the first year the plan mentioned they provided China with "competitive advantages."

An October 2025 report from the IEA notes China accounts for 94% of the production of sintered permanent magnets commonly used in cars, wind turbines, industrial motors, data centers and defense systems (up from 50% two decades ago)--"making China the world's single largest supplier of a component critical to the manufacturing of the most powerful motors that are used for many cutting-edge applications." This leaves strategic global supply chain sectors vulnerable to potential disruptions.

The U.S. in particular relies heavily on China's rare earth exports, with recent data from the U.S. Geological Survey indicating the U.S. imported 71% of its rare-earth compounds and metals between 2021-2024 from China.

U.S. efforts to lessen its dependence on China include a recently announced $12 billion plan to stockpile critical minerals, and the Trump administration's investments in private companies making minerals and magnets.

In April 2025 Beijing first introduced export controls on seven heavy rare earth elements, as well as all related compounds, metals and magnets. This reportedly spurred some U.S. manufacturers to dial back production.

China took things another step further in October, requiring that foreign companies need a license if they want to export not just elements, but also products that contain Chinese rare-earth materials or were made using the country's rare-earth technology. The country added five more rare earth elements to its list as well.

For more information on China's grip on critical minerals and the U.S.' efforts to build up its own supply, see February 10, 2026, article - Trump Announces $12 Billion Plan to Stockpile Critical Minerals.

Decarbonization Also Drives the Plan

One key pillar of the plan is the country's target of reducing its carbon emissions per unit of gross domestic product (GDP) by 17% over the course of the 2026-2030 plan, which affects the country's Metals & Minerals project activity.

For example, the plan aims to support the construction of "recycling systems" for automobiles and electronic products, as well as home appliances, and furniture.

Other byproducts of China's decarbonization effort include electric arc furnace (EAF)-produced steel and green hydrogen-based production of direct-reduced iron (DRI).

For general information on China's new five-year plan, see March 19, 2026, article - Technology, Advanced Manufacturing and Decarbonization: Three Pillars of China's Five-Year Plan.

Key Takeaways

• China's is the world's dominant miner and processor of minerals.
• The new five-year plan is aimed at building up its strategic mineral reserve.
• The country heavily imports copper and iron ore, so those are key needs.
• China controls the overwhelming majority of global mining and processing of rare earth elements and looks to add capacity.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).