As technological advancements accelerate, new fronts of geopolitical competition emerge. While rare earth minerals have long been sought after, the industrial revolution of the 21st century has made them a linchpin of global power struggles. Today, major industrial giants such as the United States, China, and Europe are engaged in a strategic contest over control of these critical resources.
Rare earth minerals consist of 17 elements essential for modern technology, with applications in consumer electronics, renewable energy, and military defense systems. As the world transitions toward greener energy solutions, the demand for rare earth elements (REEs) has surged, intensifying the race among nations to secure their supply chains.
Key applications include:
Clean Energy: Neodymium, dysprosium, and praseodymium are used to produce high-performance magnets in wind turbines and electric vehicle motors.
Electronics: Lanthanum and cerium are vital for batteries, catalytic converters, and display screens.
Defense: Yttrium, gadolinium, and samarium are indispensable for military applications, including radar systems, missile guidance, and stealth technology.
Despite their name, rare earth minerals are not geologically rare; rather, their extraction and processing are environmentally challenging, leading to geographic concentration in a few key regions. This concentration creates supply vulnerabilities and grants certain nations disproportionate leverage over global markets.
China is the dominant player in the rare earth industry, controlling around 60% of global production and an even greater share of refining capacity. Its leadership in this sector is driven by state-backed investments, advanced processing infrastructure, and a willingness to absorb environmental costs that other nations often avoid.
China has weaponized its control over rare earth supply chains as a geopolitical tool. A notable example was in 2010, when Beijing restricted rare earth exports to Japan over a territorial dispute. More recently, in 2024, China imposed export limitations on certain rare earth materials to the United States, reinforcing concerns about supply chain vulnerabilities.
Recognizing the risks of dependence on China, the United States has taken steps to diversify its rare earth supply. The Mountain Pass Mine in California is one of the country’s key rare earth sources, but the U.S. remains heavily reliant on China for refining and processing. To counter this dependency, Washington is investing in domestic capabilities while also fostering alliances with Australia, Denmark, and Canada to establish alternative supply chains.
Australia, in particular, holds significant rare earth reserves and is positioning itself as a major non-Chinese supplier. Meanwhile, Greenland, Burundi, and South Africa possess substantial untapped reserves but face infrastructure and political stability challenges that hinder full-scale extraction.
As competition over rare earths intensifies, international alliances are forming:
The Quadrilateral Security Dialogue (Quad)—comprising the U.S., Japan, Australia, and India—has explored cooperative initiatives to develop secure supply chains and reduce reliance on China.
The European Union has identified rare earth minerals as a strategic priority, investing in research and development to bolster domestic production and processing.
Despite these efforts, China continues to hold a firm grip on the sector, leveraging its dominance to advance its broader geopolitical interests.
Rare earth mining and processing come with significant environmental and social costs:
Toxic Waste: Extraction generates hazardous byproducts that contaminate soil and water sources.
Human Rights Concerns: Some mining operations, particularly in Central Africa and the Democratic Republic of Congo, have been linked to unsafe labor conditions and exploitative practices. Reports of Israeli and European firms, as well as Chinese exploitation in Africa, have raised concerns over ethical sourcing.
Balancing the need for these critical resources with environmental sustainability remains a major challenge. Without proper regulation, the expansion of rare earth mining could lead to severe ecological degradation and social injustices.
As demand for rare earth minerals continues to grow, the geopolitical struggle over these resources is likely to escalate. Beyond national rivalries, private corporations may increasingly enter the fray, competing for control over mining rights and processing capabilities. The rare earth sector is no longer just about economic interests—it is now a matter of national security, technological leadership, and global influence.
The coming years will determine whether global powers can find a sustainable and cooperative approach to rare earth extraction or if this competition will spiral into further economic and political confrontations. One thing is certain: the battle for rare earth dominance is far from over.