China Dominates Global Robotics Industry
China has solidified its position as the leading force in the global robotics sector, controlling both the manufacturing of humanoid robots and the crucial supply of rare earth magnets that power these machines. This dual dominance has raised concerns internationally about dependence on Chinese materials and production.
China’s Grip on Robotics Manufacturing
In 2026, China’s production of humanoid robots surged, with over 100,000 units expected to be built this year alone. Research firm IDC reported that nearly 25,000 such robots were shipped worldwide in the first half of 2026, more than five times the number from the same period last year; most of these were produced in China. This rapid increase marks a shift from previously limited use of humanoid robots at exhibitions to their growing deployment in factory environments.
Critical Role of Rare Earth Magnets
Humanoid robots require an estimated 30 motors each, with every motor relying on rare earth magnets to function. These magnets, essential for robot mobility, can weigh up to 4.5 kilograms per robot. China manufactures over 90% of the world’s supply of these rare earth magnets, which include specialized heavy rare earth elements like dysprosium and terbium, necessary to prevent loss of magnet strength under high temperatures.
This monopoly has a direct impact on companies outside China. For instance, Tesla’s production of its Optimus robot was recently impacted by China’s export licensing requirements on rare earth magnets. The licensing demand underlines how a single decision by Chinese authorities can disrupt global robotic manufacturing.
Implications for Pakistan and Global Markets
The growing reliance on Chinese components for robotics is a matter of strategic concern for countries like Pakistan, which is aiming to advance its industrial and technology sectors. With global forecasts projecting annual sales of about 6.5 million humanoid robots by 2035 – a near fivefold increase on earlier estimates – securing alternative supply chains for key materials like rare earth magnets is becoming ever more critical.
Efforts are underway by companies such as REalloys, which is attempting to build a rare earth magnet supply chain outside China, spanning metal processing in Canada to manufacturing in the United States. For countries dependent on Chinese imports, diversifying sources can help mitigate risks posed by geopolitical tensions and export restrictions, thereby supporting emerging industries domestically.
Michael Scott, a senior analyst, noted, “China’s dominance in both robot production and rare earth magnet supply poses challenges for global manufacturers seeking independence.” As the robotics industry expands rapidly, how countries like Pakistan navigate this landscape will shape their technological futures.
