The BRICS bloc, led by China, holds a dominant 72% share of global rare earth mineral reserves, a critical resource for modern technologies. This strategic advantage allows the alliance to dictate export terms and challenges the G7’s economic dominance, potentially shifting trade policies away from Western currencies and toward de-dollarization.
A financial tug-of-war over rare earth reserves is intensifying between the BRICS alliance and the G7. The 11-member BRICS bloc now controls an estimated 72% of these minerals, which are essential for products like Tesla electric cars, Nvidia chips, and F-35 fighter jets. This concentration of resources gives BRICS significant leverage over global supply chains and output.
Data from the latest estimates show China alone holds between 36-40% of global reserves, followed by Brazil at 15-16% and Russia at 9%. In contrast, the United States holds roughly 1% of global reserves. “The US President Donald Trump is looking to gain control of the sector and signed a pact with Japan,” states the information, referencing a $550 billion pact to secure critical minerals supply and reduce dependence on China.
However, a major complication for the West is that even when minerals are mined elsewhere, such as at Mountain Pass in California, the refining process is largely dependent on China. This refining bottleneck ensures China maintains an upper hand in the sector, as the U.S. and its allies depend on its processing output. BRICS members are therefore positioned to potentially rewrite global trade policies for these critical resources.
This dynamic poses a challenge to the U.S. dollar’s dominance, as BRICS could leverage its control to promote trade in local currencies. The Xi Jinping administration has already tightened rare earth sales to the U.S. and the West while pushing for the internationalization of the Chinese yuan. The situation has reportedly prompted U.S. Treasury officials to hold emergency meetings in 2026 to discuss what is termed “prudent de-risking.”
