Highlights

• China controls nearly 90% of global rare earth mineral processing, weaponizing trade and creating significant geopolitical leverage.
• The West faces critical challenges in developing domestic rare earth mineral capacity through mining and recycling initiatives.
• Rare earth minerals are essential for modern technology, including electric vehicles, semiconductors, and defense technologies, making their strategic control paramount.

China’s latest move to cut off exports of six critical rare earth minerals has thrown into sharp relief the West’s dangerous dependence on a hostile supplier. In a new commentary published (opens in a new tab) by the Center for European Policy Analysis (opens in a new tab) (CEPA), Christopher Cytera warns that the U.S. and Europe face a stark choice: either accelerate mining and invest heavily in rare earth recycling or continue to dance to Beijing’s tune. The article, “Rare Earth Minerals: China + Tariffs = Crisis”, pulls no punches—and neither should policymakers.

Rare earths power the very foundation of modern technology—from electric vehicle (EV) motors and wind turbines to semiconductors and guided missiles. While the minerals themselves are not geologically rare, profitable and environmentally safe extraction is a technical and economic nightmare.

That’s where China’s dominance—nearly 90% of global processing—gives it unchallenged leverage. By halting exports not only to the U.S. but also to Europe, Beijing has escalated the issue of rare earths from a trade dispute to a full-blown geopolitical weapon.

Cytera rightly points out that President Trump’s recent executive order and rare earth diplomacy with Ukraine and Greenland are forward-leaning steps. Still, even optimistic projections suggest it will take years and billions of dollars to bring meaningful domestic capacity online. Europe, recognizing it lacks meaningful reserves, is pursuing an alternative: recycling.

The EU’s Critical Raw Materials Act has seeded dozens of projects—from Heraeus Remloy’s (opens in a new tab) magnet plant in Germany to Ionic Technologies’ Belfast facility (opens in a new tab)—aimed at building a closed-loop, circular economy for rare earths. Still, the piece omits one key challenge: recycling can only succeed if collection infrastructure is scaled, consumer electronics are designed for disassembly, and strategic stockpiles are created.

Moreover, many of the new EU projects remain pilot-scale and heavily subsidized, raising questions about their scalability and competitiveness without long-term policy protection or demand guarantees.

Rare Earth Exchanges suggests that Cytera’s warning is timely and grounded. The West must act decisively, not only in mining and recycling, but also through a shared transatlantic strategy, innovation policy, and industrial discipline. Relying on China for rare earths is not just a commercial risk—it’s a systemic vulnerability that threatens energy security, defense readiness, and tech sovereignty.