- Rare-earth elements (REEs) have become a strategic asset in global politics due to their essential role in advanced technologies, clean energy, and defense systems. These 17 elements are critical for manufacturing products such as electric vehicles, wind turbines, smartphones, and military hardware like guided missiles and radar systems. As the global push for green energy intensifies, the demand for REEs continues to rise, making control over their supply a significant geopolitical concern.
- China holds a dominant position in the rare-earth market, producing over 60% of the world’s supply and processing an even greater share. This concentration has raised alarms in countries that rely heavily on Chinese exports, especially the United States, the European Union, and Japan. China has previously used its control as a political tool, such as in 2010 when it restricted REE exports to Japan amid a territorial dispute. Such events underscored the potential for supply disruptions and sparked efforts by other nations to diversify their sources and reduce dependence on Chinese rare earths.
- In response, countries like the U.S., Australia, Canada, and members of the EU have invested in developing their own rare-earth mining and processing capabilities. The United States, for instance, has supported companies like MP Materials and partnerships with allies like Australia’s Lynas to rebuild domestic supply chains. These initiatives are often framed within broader national security and industrial policy strategies, recognizing REEs as vital to technological sovereignty and defense readiness.
- Rare-earth elements have also become a key focus in trade negotiations, economic alliances, and strategic partnerships. The competition for access to rare-earth resources—especially in Africa and South America—is growing, with countries like China, the U.S., and the EU seeking to secure long-term supply agreements. This geopolitical interest extends to investment in refining and recycling technologies, aiming to create a more resilient and sustainable supply chain.
