Rare-Earth Elements and Geopolitical Concerns

 

Rare-Earth Elements and Geopolitical Concerns

Rare-earth elements (REE) are a group of seventeen chemical elements in the periodic table, the fifteen lanthanides as well as yttrium and scandium as defined by the International Union of Pure and Applied Chemistry (IUPAC). Scandium and yttrium are considered REE since they tend to occur in the same ore deposits as the lanthanides and exhibit similar chemical properties. 

The REE geochemical classification is usually done on the basis of their atomic weight. One of the most common classifications divides REE into 3 groups: light rare earths elements (LREE - from 57La to 60Nd), intermediate (MREE - from 62Sm to 67Ho) and heavy (HREE - from 68Er to 71Lu). REE usually appear as trivalent ions, except for Ce and Eu which can take the form of Ce4+ and Eu2+ depending on the redox conditions of the system. In lanthanide atoms, the configuration of the valence electrons of the outermost shell is the same for all the species while the 4f orbitals are progressively filled with increasing atomic number. Thus, rare earth elements are a group of 17 chemically similar metals that include the 15 lanthanides along with scandium and yttrium. 

OCCURRENCE

Despite their name, most rare earths are relatively abundant in the Earth's crust; however, their extraction and refining are complex and environmentally challenging, which contributes to their “rare” designation. Rare earths were mainly discovered as components of minerals. The term "rare" refers to these rarely found minerals and "earth" comes from an old name for oxides, the chemical form for these elements in the mineral. All REE occur in nature but not in pure metal form, although Promethium, the rarest, only occurs in trace quantities in natural materials. The most abundant rare-earth element is cerium, which is the 25th most abundant element in Earth's crust. They are found in over 200 minerals and ore deposits. The main minerals mined for REEs are bastnasite, monazite, loparite, and laterite clays.

Rare-earth elements occur in nature in combination with phosphate (monazite), carbonate-fluoride (bastnasite), and oxygen anions. The principal sources of rare-earth elements are the minerals bastnasite (RCO3F, where R is a mixture of rare-earth elements), monazite (XPO4, where X is a mixture of rare-earth elements and sometimes thorium), and loparite [(Ce,Na,Ca)(Ti,Nb)O3], and the lateritic ion-adsorption clays. Despite their high relative abundance, rare-earth minerals are more difficult to mine and extract than equivalent sources of transition metals, making the rare-earth elements relatively expensive. 

UNIQUE PROPERTIES

REEs are vital due to their unique magnetic, luminescent, and electrochemical properties. These characteristics make them indispensable in the development of high-performance electronic components, enabling advancements in miniaturization, efficiency, and functionality. Their industrial use was very limited until efficient separation techniques were developed, such as ion exchange, fractional crystallization, and liquid–liquid extraction during the late 1950s and early 1960s. But, REE are the elements that have now become extremely important to our world of technology due to their unique magnetic, phosphorescent, and catalytic properties. These elements are critical to technologies ranging from cell phones and televisions to LED light bulbs and wind turbines.

APPLICATIONS

Rare-earth elements (REE) are necessary components of more than 200 products across a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions. Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems. 

The uses for rare earths include semiconductor chips that power artificial intelligence; the motors of electric vehicles; fighter jets and guided missiles used by the U.S. military; wind turbines; and LED lights found in millions of households, among others. Many rare earths have chemical properties that make them heat resistant, so they can be used to create high-quality magnets, glass, lights and batteries. Magnets made from rare earths are significantly more powerful and valuable than other types, especially in electric car production.

Some applications in Electronics are as follows:

• Permanent Magnets: Neodymium (Nd), Praseodymium (Pr), and Dysprosium (Dy) are used to produce strong neodymium-iron-boron (NdFeB) magnets. These magnets are critical in small yet powerful electric motors found in hard disk drives, headphones, smartphones, and electric vehicles (EVs).

• Phosphors and Displays: Europium (Eu), Terbium (Tb), and Yttrium (Y) are used in red, green, and blue phosphors for LED lights, LCD screens, and fluorescent displays. These REEs contribute to color accuracy and brightness in TVs, computer monitors, and smartphones.

• Batteries and Energy Storage: Lanthanum (La) is a key component in nickel-metal hydride (NiMH) batteries, which were widely used in hybrid vehicles and are still used in certain portable electronics.

• Capacitors and Semiconductors: Cerium (Ce) and other REEs are used in polishing powders for silicon wafers and in the production of certain high-dielectric ceramic capacitors.

• Fiber Optics and Lasers: Erbium (Er) is used in optical fibers for amplifying signals in telecommunications. REEs are also essential in laser technologies used in everything from medical devices to precision manufacturing.

Other Applications

Electronics: Television screens, computers, cell phones, silicon chips, monitor displays, long-life rechargeable batteries, camera lenses, light emitting diodes (LEDs), compact fluorescent lamps (CFLs), baggage scanners, marine propulsion systems

Manufacturing: High strength magnets, metal alloys, stress gauges, ceramic pigments, colorants in glassware, chemical oxidizing agent, polishing powders, plastics creation, as additives for strengthening other metals, automotive catalytic converters

Medical Science: Portable X-ray machines, X-ray tubes, magnetic resonance imagery (MRI) contrast agents, nuclear medicine imaging, cancer treatment applications, and for genetic screening tests, medical and dental lasers

Technology: Lasers, optical glass, fiber optics, masers, radar detection devices, nuclear fuel rods, mercury-vapor lamps, highly reflective glass, computer memory, nuclear batteries, high temperature superconductors

Renewable Energy:    Hybrid automobiles, wind turbines, next generation rechargeable batteries, biofuel catalysts

SUPPLY CHAIN AND GEOPOLITICAL CONCERNS

Rare earths are mined from rock deposits in the earth’s crust. With nearly 70 percent of the market, China is able to control the export and price of the metals sold around the world. About 90 percent of rare earth magnets are produced in China, and 99.9 percent of the world’s dysprosium, which the chipmaker Nvidia uses to create capacitors, is mined in China.

China currently dominates the global supply chain, producing over 60% of the world's rare earths. China is the world's largest producer of rare earth metals. Many countries depend on China to meet their supply and demand for rare earth metals. In 1993, 38 percent of world production of REEs was in China, 33 percent was in the United States, 12 percent was in Australia, and five percent each was in Malaysia and India. Several other countries, including Brazil, Canada, South Africa, Sri Lanka, and Thailand, made up the remainder. However, in 2008, China accounted for more than 90 percent of world production of REEs, and by 2011, China accounted for 97 percent of world production. Beginning in 1990 and beyond, supplies of REEs became an issue as the Government of China began to change the amount of the REEs that it allows to be produced and exported. The Chinese Government also began to limit the number of Chinese and Sino-foreign joint-venture companies that could export REEs from China. This has raised strategic concerns among other nations about supply security, particularly as demand for electronics, green energy, and defense technologies continues to rise. Hence, several countries are investing in rare earth recycling, alternative materials, and diversified mining sources, including efforts in Australia, the U.S., and Canada. REEs are important to national security, energy independence, environmental future, and economic growth.

China controls a significant portion of the world's rare earth production and refining, making it a major supplier of these critical minerals. Dependence on a single source country increases the risk of supply disruptions due to political instability, trade wars, or other geopolitical events. Many countries are actively seeking to diversify their rare earth supply chains by investing in new mining projects, developing processing capabilities, and exploring alternative sources. Geopolitical tensions, such as trade disputes and export restrictions, can further disrupt rare earth supply chains and impact global economies. Rare earth elements are crucial for various industries, including electronics, defense, and renewable energy, making their control a significant geopolitical issue.

In recent time, Donald Trump’s soaring tariffs on China have sparked a critical minerals standoff, with Beijing striking back by restricting exports of rare earth elements vital to America’s defence and tech industries. While Trump champions a self-reliant minerals policy, China’s dominance in rare earths and magnet production gives it enormous leverage. As supply chains buckle and prices rise, Washington’s plans for domestic mineral independence face serious headwinds—from volatile markets to investor uncertainty and geopolitical brinkmanship. In recent years, rare earths have become an increasingly important geopolitical tool. The Trump administration has sought to broker a deal to acquire mineral-rich Ukraine’s rare earths in exchange for military support. The administration has also talked about an outright takeover of Greenland, in part because of its rich rare earth supply. The Pentagon and defense contractors are heavily reliant on magnets and rare earth minerals mined or processed in China, which has suspended exports of the materials in an escalating trade war. Rare earth minerals are present in almost every form of American defense technology. They can form very powerful magnets, for use in fighter jets, warships, missiles, tanks and lasers.

China’s new restrictions on exports of the metals could have an impact on the production of everything from LED lights to fighter jets. For years, the Chinese government has worked to control the export of rare earths, a group of metals used in an array of products, as common as semiconductors and lights. Now, in its trade war with the United States, China is moving to limit the market for these metals even further, which could have disastrous consequences for American manufacturing and military power.

Without an adequate supply of rare earths, American manufacturing for sectors like the automotive industry would grind to a halt. Some American companies have been stockpiling rare earths elements for years in anticipation of a trade war, but it’s unclear how long those supplies would last if China cut off exports. It could also affect the strategic goals of the U.S. military, which without rare earths could wind up with shortages of drones, missiles and aircraft. Companies like Nvidia, whose chips are already in short supply, could also be affected, along with smartphone makers like Apple. While many rare earth mining operations in China were for years private or even foreign-owned, the Chinese government has consolidated control over the industry by acquiring the largest local miners with state-owned companies, giving it total control over manufacturing and exporting.

In 2025, rare-earth elements will continue to be a focal point of geopolitical tensions, particularly due to China's dominant role in their production and processing. This dominance raises concerns about supply chain vulnerabilities and potential disruptions, impacting various industries, especially those reliant on clean energy technologies. The demand for rare earth elements in wind turbines, electric vehicles, and other clean energy technologies is projected to increase, further emphasizing the importance of secure supply chains.  Rare earth elements are also vital components in semiconductors, advanced electronics, and military technologies, making them strategically important for national security. Geopolitical uncertainties can lead to price fluctuations in rare earth elements, impacting the cost of goods and services that rely on them.

Overall, the geopolitical landscape surrounding rare earth elements in 2025 will be characterized by ongoing efforts to diversify supply chains, mitigate risks, and secure access to these critical minerals for various industries and national security needs.

CONCLUSIONS

The rare earth elements are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table plus scandium and yttrium. Fast emerging green technologies ranging from electric car batteries to solar panels to wind turbines, in addition to others where REE are widely being used together with price rise, are expected to drive tremendous growth and demand for these metals in near future. The geopolitical landscape surrounding rare earth elements in 2025 will be characterized by ongoing efforts to diversify supply chains, mitigate risks, and secure access to these critical minerals for various industries and national security needs. Rare earth elements are the invisible backbone of modern electronics. As the world continues to shift toward digitalization and green technologies, their significance will only grow.   REEs are important to national security, energy independence, environmental future, and economic growth. Addressing the challenges of supply, sustainability, and innovation in this field is essential for the continued evolution of the electronics industry. \

For Further Reading

1. https://www.sciencedirect.com/science/article/pii/S1674987119300258

2. https://en.wikipedia.org/wiki/Rare-earth_element

3. https://profession.americangeosciences.org/society/intersections/faq/what-are-rare-earth-elements-and-why-are-they-important/

4. http://www.namibiarareearths.com/rare-earths-industry.asp

5. https://economictimes.indiatimes.com/news/international/global-trends/rare-earth-minerals-the-hidden-metals-behind-missiles-how-china-is-weaponising-the-worlds-supply-chains/articleshow/120282974.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

6. https://www.nytimes.com/2025/04/14/us/politics/china-critical-minerals-risk-military-programs.html