Rare Earths

What Are They?

Rare earths are 17 elements with properties that make much of modern technology work. They help power electric vehicles, smartphones, wind turbines, computer chips, medical scanners, military equipment, and AI infrastructure.

Despite the name, they’re abundant in the Earth’s crust. They’re called “rare” because it’s unusual to find them in high concentration or pure metal forms.

The tricky part is separating them from rock and from one another, then turning them into usable materials. That process is complex, costly, and potentially polluting.

Why Should I Care?

Some of the strongest and lightest permanent magnets are made of alloys of rare-earth elements like neodymium and samarium. They can pack intense magnetic power into tiny spaces, making them very useful for technology companies. Rare earths are also used in ceramics and specialized glass needed in touch screens, LED lights, and eyewear.

China has spent decades building dominance in rare earths that stretches from mines to finished products. This is why the rare-earth supply chain is among the most concentrated in critical metals. In 2025, China:

• Mined around 60% of the rare earth metals
• Processed 91% of the global supply
• Made 94% of the rare-earth magnets

What’s the Catch?

China’s 2025 rare-earth export restrictions disrupted global supplies, forcing other governments to search for alternative sources. But opening mines is not enough. Breaking dependency requires an entire localized supply chain: processing plants, specialized technology, skilled labor, and factories to build magnets.

Most importantly, it requires buyers willing to pay up for non-Chinese supply in long term.

A cautionary tale: when China first restricted exports in 2010, shares of the sole major US rare-earth miner, Molycorp, spiked. But market panic subsided as manufacturers pivoted to other materials and new suppliers emerged. When the World Trade Organization eventually forced China to lift the quotas, prices collapsed, bankrupting Molycorp.