Rare earth elements (REEs) are a group of 17 metallic elements: the 15 lanthanides plus scandium and yttrium. Despite the name, most are reasonably abundant in the Earth's crust, but they rarely occur in concentrated, economically extractable deposits and are chemically difficult to separate from one another. This separation step—typically solvent extraction—is the real chokepoint in the supply chain, not mining itself.
REEs are essential inputs for permanent magnets (neodymium, praseodymium, dysprosium, terbium), phosphors, catalysts, lasers, and specialty alloys. They underpin technologies central to the energy transition and defense, including electric vehicle motors, wind turbine generators, precision-guided munitions, and the F-35 fighter, which reportedly contains hundreds of kilograms of REE-bearing components.
Geopolitically, REEs matter because production is highly concentrated. According to the U.S. Geological Survey's Mineral Commodity Summaries, China has consistently accounted for roughly 60–70% of global mine production and an even larger share—commonly cited above 85%—of refining and separation capacity. This dominance was built over decades through state-supported investment, lax early environmental enforcement, and integrated industrial policy.
The strategic salience of REEs crystallized after the 2010 Senkaku/Diaoyu incident, when China was widely reported to have curtailed REE shipments to Japan amid a maritime dispute. Japan, the EU, and the United States subsequently challenged Chinese export quotas at the WTO (DS431/432/433, 2014), which the Appellate Body ruled inconsistent with China's WTO obligations.
Policy responses have included the U.S. Defense Production Act Title III awards to firms such as MP Materials and Lynas USA, the EU Critical Raw Materials Act (2024), Japan's stockpiling and diversification via JOGMEC, and bilateral partnerships under the U.S.-led Minerals Security Partnership launched in 2022. In 2023 and again in 2025, China tightened export controls on certain REEs and processing technologies, reinforcing the resource's status as a tool of economic statecraft.
Example
In July 2023, China announced export controls on gallium and germanium, followed by tightened licensing on rare earth processing technologies, prompting the EU and U.S. to accelerate diversification under the Minerals Security Partnership.
Frequently asked questions
Geologically, most are not—cerium is more abundant than copper. They are 'rare' because they seldom occur in concentrated ore bodies and are chemically difficult and costly to separate into individual high-purity elements.
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