Chinese Power Grab - Understanding the Importance of Rare Earth Elements in Modern Technology

Mark Watson-Mitchell - 14.10.2025

As Trump and China face up to each other with their tariff battles, I thought that it might be well worth identifying an important feature in their struggles - the control of Rare Earth resources.

Rare earth elements (REEs) are vital for developing and operating technology we use daily. Despite their name, they are not as rare as one might think in the Earth's crust. The challenge lies in finding them in high enough concentrations for extraction. This article will dive into what rare earth elements are, their significance across various industries, and the hurdles connected to their extraction and usage.

What Are Rare Earth Elements?

Rare earth elements comprise 15 lanthanides, plus scandium and yttrium. Common lanthanides include lanthanum, cerium, neodymium, and europium. These elements are prized for their special electronic, optical, and magnetic properties, making them essential for a wide array of applications.

Though labeled "rare," many of these elements exist in substantial amounts but are hard to mine. For example, cerium ranks as the 25th most abundant element in the Earth's crust, yet it remains economically challenging to extract.

The Role of Rare Earth Elements in Technology

Electronics

Rare earth elements significantly impact the electronics sector. Neodymium, for instance, is used to manufacture powerful magnets found in various devices such as headphones and hard drives. These magnets are crucial for miniaturizing electronics, allowing manufacturers to create smaller and more efficient gadgets.

Cerium plays another key role in electronics. It is a crucial component in catalysts for automotive exhaust systems, cutting harmful emissions by up to 90%. The ongoing push for cleaner technologies drives the demand for cerium in catalytic converters, making them more efficient.

Renewable Energy

In the renewable energy industry, rare earth elements serve critical functions. Wind turbines, for example, utilize neodymium-iron-boron magnets to generate electricity effectively. As countries worldwide aim for net-zero emissions, the demand for these magnets may increase by over 20% in the next decade.

Rare earths are also prominent in battery production, particularly for electric vehicles (EVs). Lanthanum and nickel-metal hydride batteries power many hybrid and electric cars, essential for transitioning to greener transportation options. In fact, the global electric vehicle market, fueled by demand for cleaner alternatives, is projected to grow by 22% annually.

Defence and Aerospace

The defence and aerospace industries rely on rare earth elements for countless applications. These elements enhance the performance of precision-guided munitions, missile systems, and advanced radar technologies. For instance, europium is vital in creating phosphors that improve night vision devices. Dysprosium, known for its heat resistance, is used in high-performance magnets required for military applications.

The strategic significance of these elements has heightened interest in fostering stable suppliers, especially given the geopolitical landscape. Currently, about 80% of the world's rare earth supply comes from China, highlighting vulnerabilities in global supply chains.

Healthcare

In healthcare, rare earth elements play roles in medical imaging and diagnostic tools. Gadolinium, for instance, is a key contrast agent used in magnetic resonance imaging (MRI) scans. Its unique properties make for clearer images, improving diagnostic accuracy.

Researchers are also investigating the potential of rare earth elements in targeted cancer therapies. Preliminary studies suggest that specific cerium compounds could help deliver drugs directly to tumours, showcasing the versatility of these materials in health science.

Challenges in Rare Earth Element Extraction

Environmental Concerns

The extraction process for rare earth elements is fraught with environmental risks. Mining can lead to soil and water contamination and habitat destruction. For example, rare earth mining in Mongolia has raised concerns due to toxic byproducts affecting local water supplies.

Sustainable extraction methods are being researched, but the industry still faces criticism over its ecological footprint. Balancing the growing demand for rare earths with environmental protection remains a pressing challenge.

Supply Chain Vulnerabilities

The global supply chain for rare earth elements is notably concentrated in a few nations, primarily China. This dependency creates vulnerabilities, particularly during geopolitical tensions that may disrupt supply routes or inflate prices.

Many countries now recognize the urgency of diversifying their sources. For instance, the United States and Australia are ramping up efforts to develop domestic mining operations and recycling programs for rare earth elements.

Recycling and Sustainability

Recycling rare earths presents a viable solution for addressing mining impacts and ensuring a steady supply. While the recycling process is complex and not widely adopted, advancements are being made. Current initiatives aim to improve technologies and establish incentives for recovering rare earths from electronic waste, moving toward a circular economy.

The Future of Rare Earth Elements

Technological Advancements

As technology advances, the demand for rare earth elements is set to rise. New innovations in electronics, renewable energy, and healthcare will bolster this need.

Researchers are also exploring alternative materials that could potentially replace rare earths in specific applications. While these alternatives may not yet match the efficiency of rare earths, upcoming breakthroughs could pave the way for less dependency on these critical materials.

Policy and Regulation

Policymakers globally are beginning to understand the importance of securing rare earth supplies. Initiatives focusing on supply chain security, recycling promotion, and research into alternative materials are gaining momentum.

International cooperation is vital in which countries work together to navigate the challenges surrounding rare earth elements. Collaborative efforts can help stabilize supply while minimizing environmental harm.

The Ongoing Journey of Rare Earth Elements

Rare earth elements form the backbone of modern technological advancements, impacting everything from electronics to renewable energy and healthcare. Their unique properties make them indispensable, but challenges regarding extraction and supply chain vulnerabilities must be addressed.

With rising demand for rare earth elements, developing sustainable practices and exploring substitutes will be crucial. By tackling these issues, we can ensure that rare earth elements continue to play a significant role in technology while minimizing their environmental impact.

Rare earth elements in a laboratory setting