
Why They Are So Important
Everyday Technology
Rare earth is in nearly everything we use. They are essential for manufacturing smartphones, screens, speakers, cameras, lasers, hard drives, and computers. They allow components to be miniaturized and devices to perform better.
Energy Transition and Electric Mobility
These elements are vital for advancing sustainable technologies.
- Electric cars rely on permanent magnets made of neodymium and praseodymium in their motors.
- Wind turbines use rare earth to generate energy more efficiently.
As the world accelerates the shift to clean energy, global demand for these metals is rising rapidly.
Defense and Geopolitics
The same elements are used in radars, drones, satellites, and guided missiles, making them strategic for national security. Countries controlling production or exports gain political power and global influence.
What Are Rare Earth?
Despite the name, rare earth isn’t actually rare in the Earth’s crust. They are special because they occur in low concentrations and are mixed with other minerals, requiring expensive and complex processes to separate them.
These elements — called rare earth elements (REEs) — include 17 metals: the 15 lanthanides plus scandium and yttrium. Their magnetic, electrical, and luminescent properties make them essential for modern technology and the green economy.
Who Dominates Production — and What’s the Problem?
Production Concentration
Although deposits exist in many countries, extraction and refining are heavily concentrated in China, which produces over two-thirds of global mining and nearly all refining of certain types.
Why Few Countries Explore at Scale
Several reasons:
- Low profitability relative to investment required.
- High environmental impact, producing toxic and radioactive waste.
- Complex infrastructure, as the process involves separation, purification, and manufacturing of alloys and specific magnets.
What Is at Stake for Countries?
Energy and Industrial Security
If rare earth supplies are disrupted by trade barriers or geopolitical disputes, entire industries — like electric vehicles and defense — could halt.
Strategic Autonomy
To reduce dependence, many countries are investing in new mines, local refining, and recycling components containing rare earth. It’s a race for technological independence.
Green Economy Transition
In a low-carbon economy, access to rare earth is crucial. Those controlling these resources will have a competitive advantage in clean energy production and sustainable technologies.
The Strategic Role of Rare Earth
Rare earth go beyond technology: they are key to economic and geopolitical independence and to developing sustainable solutions in energy, transportation, and communication. Investing in research, recycling, and responsible extraction is both strategic and an opportunity to create cleaner technologies while reducing reliance on a few global suppliers.
References
- DW – What happens if China cuts off access to rare earth elements?
- DirectIndustry – What are rare earth elements and why are they so important for industrial production?
- World Resources Institute – Critical minerals explained
- World Economic Forum – Why we need critical minerals for the energy transition
- Business Standard – Why nations race to secure rare earth supply chains
- India Today – Why rare earths are the new gold in geopolitics








