What do iPhones, electric vehicles, wind turbines, and advanced fighter jets have in common? They all rely on a small group of obscure-sounding substances known as rare earth elements (REEs). These 17 metals may be hidden beneath the headlines, but their role in the global economy—and global power dynamics—is monumental.
In an era of rising technological nationalism and supply chain shocks, rare earths have become a strategic chokepoint. From Western efforts to de-risk dependency on China to emerging players in Africa and South America, the stakes around these elements have never been higher.
In this article, we break down the 7 rare earth geopolitical risks reshaping our world in 2025 through economic, environmental, and security lenses.
Let’s dig in.
What's Inside
What Are Rare Earth Geopolitical Risks?
Rare earth elements (REEs) might sound like something from a science fiction novel, but they’re actually crucial components in many of the technologies we use every day. These 17 metallic elements are hidden heroes in everything from electric vehicle batteries to smartphone screens, military guidance systems, and renewable energy technologies.
Think of rare earth elements as the secret sauce of modern technology. They’re essential for creating powerful magnets used in wind turbines, critical components in advanced military equipment, and key ingredients in the electronics that power our digital world. Despite their name, these elements aren’t actually that rare – they’re just challenging and expensive to extract and process.
The real drama surrounding rare earth elements is about control. These minerals have become strategic assets in global economic and political competitions. Countries that can mine, refine, and export these elements hold significant economic and technological power. It’s like having a trump card in the global technology and defense game.
1. China’s Rare Earth Dominance: Supply Chain Leverage with Global Impact
China has emerged as the undisputed heavyweight champion of rare earth production. As of 2023, the country produces over 60% of the world’s rare earth elements, with massive mining and processing centers concentrated in regions like Inner Mongolia and Sichuan. This isn’t just an industrial achievement – it’s a strategic masterstroke.
The Chinese government has carefully cultivated this dominance, viewing rare earth elements as a critical national asset. By controlling the majority of global production and processing capabilities, China can potentially squeeze global supply chains and exert economic pressure on other countries. In 2023, the world got a preview of this strategy when China imposed export controls on critical minerals like gallium and germanium.
The Strategic Implications
Geopolitical experts have long warned about the potential for rare earth elements to become a economic weapon. When a country controls such a significant portion of a critical resource, it can potentially disrupt global technology production, military capabilities, and economic stability with just a few policy decisions.
2. U.S. and Allies Race to Secure Rare Earth Independence
Recognizing the strategic vulnerability, the United States has launched an aggressive strategy to diversify rare earth element sources. The Department of Defense and Department of Energy have developed comprehensive plans to reduce dependence on Chinese supplies.
Key initiatives include significant investments in domestic mining projects and strategic partnerships with allies like Canada and Australia. Companies such as MP Materials and Lynas Rare Earths are at the forefront of these efforts to create alternative rare earth supply chains.
Legislative efforts like the Inflation Reduction Act and the CHIPS and Science Act provide financial incentives and support for developing domestic rare earth capabilities. The European Union has also joined this race, passing the Critical Raw Materials Act in 2023 to reduce its own mineral dependencies.
3. The Belt and Road Effect: China’s Rare Earth Influence in Africa & Latin America
China’s strategy extends far beyond its own borders. Through the Belt and Road Initiative, the country has been aggressively investing in rare earth exploration and mining in countries like Tanzania, the Democratic Republic of Congo, and Brazil.
These investments aren’t simple business transactions. They’re complex geopolitical maneuvers that often come with infrastructure projects, long-term offtake agreements, and strategic alignments that give China significant influence in these regions.
For host nations, these investments represent both opportunities and risks. While they bring much-needed infrastructure and economic development, they also raise concerns about resource nationalism, environmental damage, and long-term economic dependency.
4. Environmental and Human Rights Risks in Rare Earth Mining
The dark side of rare earth mining is often hidden from view. Extracting these elements can be environmentally devastating, involving processes that create radioactive waste and can poison groundwater and surrounding ecosystems.
Labor rights are another critical concern. In countries like Myanmar and the Democratic Republic of Congo, informal mining practices often involve dangerous working conditions and exploitation of local communities.
Western mining companies are increasingly focusing on environmental, social, and governance (ESG) standards, creating a stark contrast with some less-regulated mining operations in other parts of the world.
5. Rare Earths in Military and Cybersecurity Strategy
Rare earth elements are not just an economic issue – they’re a national security imperative. These minerals are critical in advanced military technologies, including guidance systems, stealth technologies, communication systems, and satellite technologies.
Defense analysts warn of potential catastrophic scenarios in which global access to rare earths could be suddenly cut off. This isn’t just a theoretical risk – it’s a real strategic consideration in the ongoing technological competition between the United States and China.
What Lies Ahead: Future Shock Scenarios and Global Supply Chain Resilience
Looking ahead to 2030, demand for rare earths is projected to surge, driven by the growing adoption of electric vehicles, renewable energy technologies, and advanced defense systems. The potential for supply chain disruption remains a significant global risk.
Innovative technologies are emerging to address these challenges. New processing methods, potential mineral substitutes, and advanced recycling techniques could help create more resilient global supply chains.
Multilateral institutions, such as the World Trade Organization, the International Energy Agency, and the G7/G20 forums, are increasingly focused on creating stable and diversified rare earth supply networks.
Conclusion
Rare earth elements may be tiny in size, but their geopolitical gravity is enormous. From supply chain vulnerabilities and environmental blowback to superpower competition and resource diplomacy, rare earths sit at the intersection of technology and territory. As China tightens its grip, Western nations scramble to diversify and fortify their mineral supplies. Meanwhile, emerging economies face high stakes in balancing resource opportunity with sovereignty and sustainability.
Understanding these pressures—and preparing for the turbulence ahead—is no longer optional. Whether you’re shaping national policy or making investment decisions, rare earths are no longer out of sight or out of mind. Stay informed, stay critical, and keep a close eye on the elements that drive global power today.
FAQs
What are rare earth elements used for?
Rare earth elements (REEs) are vital in manufacturing magnets, batteries, electronics, wind turbines, and military equipment. They’re essential for high-performance, miniaturized technologies.
Why does China dominate the rare earth market?
China has historically invested heavily in rare earth mining and, more critically, in refining infrastructure. It also benefits from lower production costs and weaker environmental regulations, helping establish a near-monopoly.
Can the U.S. and its allies reduce dependence on China for rare earths?
Yes, but it will take time—years, possibly a decade. Current efforts include funding domestic mines, recycling programs, and forging partnerships with Australia, Canada, and other allied nations.
Are there environmental concerns linked to rare earth mining?
Absolutely. The process often involves toxic chemicals, radioactive byproducts, and groundwater pollution, particularly in environments with lax regulatory oversight.
What’s being done to create alternative sources or substitutes?
Innovations include rare earth recycling programs, new magnet designs that use fewer REEs, and R&D into synthetic or substitute materials, although many are still years from achieving large-scale viability.
Dustin
Driven by a fascination with rare earth elements and their role in powering modern tech and engineering marvels. A true car and tech enthusiast, he loves exploring how these hidden heroes fuel our most exciting innovations.
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