China’s provincial geological exploration funds reached 5.547 billion yuan (approximately $817 million) in 2025, up 714 million yuan from 2024, according to data released by the Ministry of Natural Resources.

Mineral exploration accounted for 3.907 billion yuan (about $575 million), an increase of 878 million yuan, or 29% year-on-year — the largest rise in five years.

The figures, reported on October 16, 2026, underscore China’s renewed push to bolster domestic mineral exploration as the country seeks to secure supply chains for critical minerals and reduce reliance on imports.

The 29% jump in mineral exploration funding marks a significant acceleration from previous years. The increase of 878 million yuan in 2025 alone exceeds the total annual exploration budget of many mid-tier mining jurisdictions.

Provincial governments have been increasing their allocations to geological survey and mineral resource assessment, particularly for strategic and critical minerals.

While the Ministry of Natural Resources did not provide a breakdown by commodity, industry analysts expect the funding to target lithium, rare earth elements, cobalt, nickel, copper and other minerals essential to China’s electric vehicle, battery, renewable energy and defence industries.

The funding increase aligns with China’s broader strategy to enhance resource security. In recent years, Beijing has introduced a series of measures to encourage domestic exploration, including streamlined permitting, tax incentives and increased support for geological survey institutions.

The country’s 14th Five-Year Plan (2021–2025) identified mineral resource security as a national priority, and the 15th Five-Year Plan, currently in drafting, is expected to maintain that emphasis.

China is the world’s largest consumer of many critical minerals but relies heavily on imports for commodities such as cobalt, nickel and lithium. While the country dominates global processing and refining, it has sought to increase domestic upstream production to reduce vulnerability to supply disruptions and geopolitical tensions.

The 5.547 billion yuan figure covers provincial-level geological exploration funds only. Central government funding, state-owned enterprise investment and private-sector exploration spending are tracked separately and are understood to be significantly larger.

The provincial data nonetheless provides an important indicator of grassroots exploration activity, as provincial governments are responsible for regional geological surveys and often co-fund exploration projects with mining companies.

Mining analysts noted that the increase in exploration funding is a positive signal for global mineral markets, as China’s demand for imported minerals could moderate if domestic discoveries translate into production. However, the lag between exploration spending and mine development — typically five to ten years — means the impact on supply will not be immediate.

“The increase is significant, but it’s important to see whether it translates into commercial discoveries,” said a Beijing-based mining analyst who declined to be named. “Exploration spending is necessary but not sufficient. You need the right geology, the right technology and the right regulatory environment.”

The Ministry of Natural Resources is expected to release further details on exploration targets and discoveries in its annual report later this year.