Strategic Summary
The global critical minerals landscape is shifting as China reasserts its dominance over rare earths, while Indonesia establishes a new strategic minerals authority to control rare earths and radioactive materials—signaling serious intent to reduce dependency and enhance sovereignty in supply chains.
Key Points
China’s Rare Earth Leverage Deepens
China continues as the primary gatekeeper of rare earth production and processing, with Western nations still heavily dependent despite years of strategic warnings. Diversification efforts like the EU Critical Raw Materials Act are years behind realizing impactful results.
https://www.ft.com/content/5cd7bccb-24cb-46ec-935a-1da262e435e1Indonesia Establishes Mineral Industry Agency
President Prabowo Subianto has empowered a new agency headed by Higher Education Minister Brian Yuliarto to oversee rare earth development. The agency aims to extract rare earths as by-products from nickel and tin mining, improving local processing capacity and economic sovereignty.
https://www.reuters.com/world/asia-pacific/indonesia-sets-up-new-mineral-industry-agency-oversee-rare-earths-development-2025-08-25/
Why It Matters
Strategic Vulnerability Amplified
China’s continued control underscores the fragility of Western supply chains—diversification remains critical for sectors from defense to EVs.Indonesia Joins Sovereign Supply Race
By institutionalizing rare earth oversight, Indonesia advances its role from resource exporter to strategic processor—creating upstream competitive pressure.New Geopolitical Battleground
These moves highlight the shifting global race for critical minerals—one increasingly defined by institutional capacity, not just geological endowments.
Watchlist Companies & Entities
Indonesian Mineral Industry Agency – Newly established authority spearheading rare earth and radioactive mineral strategy.
https://www.reuters.com/world/asia-pacific/indonesia-sets-up-new-mineral-industry-agency-oversee-rare-earths-development-2025-08-25/Indonesia Nickel/Tin Miners – Potential producers of rare earth by-products; likely early adopters of downstream processing strategies.
Critical Minerals Spotlight
Rare Earth Elements (REEs) – Foundation of EV motors, guidance systems, and renewable technologies; global production still heavily centralized in China.
Action Points
Monitor Indonesia’s agency roadmap: permit frameworks, processing targets, and partnerships.
Assess how China’s rare earth leverage may shape Western industrial and subsidy policies.
Track potential shifts in investor sentiment toward non-China rare earth projects and regional processing hubs.
This briefing is for informational purposes only and is not legal, investment, or policy advice. Information is believed accurate at time of publication. Sources are publicly available.