The ongoing global race towards digitisation, electrification, and eco-centric modernity is inextricably tied to the availability and sovereign control of Rare Earth Elements (REEs). Though not intrinsically rare, their naturally occurring concentrations, amenable to extraction, are particularly scarce, endowing them with the ‘rare’ status in global commerce and statecraft.
The 17 Rare Earth Elements (REEs) are comprised of Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, and Lutetium, along with Scandium and Yttrium and form a chemically coherent group critical to high-tech, defence, and green energy applications. Though Promethium is radioactive and exceedingly rare, the others are commonly found in bastnäsite, monazite, and xenotime ores. Scandium and Yttrium, while not true lanthanides, exhibit similar properties and are thus included.
REEs, particularly neodymium, praseodymium, dysprosium, and terbium are foundational to permanent magnet technology. These materials power critical components in electric vehicles, wind turbines, guidance systems in fighter aircraft, and premium-grade digital cameras.
The paradox of the REE market lies in the dichotomy of abundant terrestrial presence versus complex extraction protocols. Many REEs, such as Cerium, occur more abundantly than Copper, yet their refinement is technologically difficult, ecologically deleterious, and economically constrained. Compounding these challenges is the quasi-monopolistic dominion of the People’s Republic of China, which, according to the United States Geological Survey (USGS), commanded 70% of global REE mining output and 90% of global separation and refining capabilities in 2023.
The global REE industry, valued at USD 12.4 billion in 2024, is anticipated to reach USD 37 billion by 2033, with an estimated Compound Annual Growth rate of almost 12.8 percent. EV sales have rocketed from one million units in 2017 to 14.2 million in 2023, intensifying demand for Nd‑Fe‑B magnets. The United States, via MP Materials and USA Rare Earth, is endeavouring to revive domestic production: US output rose from 15 kt in 2017 to approximately 43-45 kt in 2023-2024, albeit still dwarfed by China.
In 2023 alone, China reportedly produced 240,000 metric tonnes of REEs out of a global total of 350,000 metric tonnes. Western economies, including the United States, United Kingdom, and European Union member states, remain largely dependent on Chinese exports for these vital materials, even when possessing domestic mineral reserves. The paradox is stark; The Mountain Pass mine in California and Australia’s Mount Weld possess robust REE deposits, yet still rely heavily on Chinese facilities for final-stage processing due to the absence of economically viable domestic refining means.
Viable substitutes for many REEs remain either technologically infeasible or economically prohibitive. The magnetic, photoluminescent, and catalytic properties of these elements are irreproducible in most industrial contexts. Dysprosium’s role in improving the thermal resilience of magnets is unmatched, while Europium’s red phosphorescence is vital for LED displays. The attempt to diversify supply through secondary sources such as e-waste recycling or tailings reclamation is commendable, but insufficient to meet demands. The International Energy Agency (IEA) has already warned that the global consumption of rare earths could surge by up to 700% by 2040, driven primarily by the clean energy transition.
The practices of Rare Earth Extraction have historically led to extensive ecological degradation, radioactive contamination, and socio-environmental dislocation. In regions where hand mining persists, there is substantive documentation of exploitative labour, child labour, and illicit trading channels, raising serious reputational, legal, and ethical concerns for multinational corporations dependent on these opaque supply lines. For corporations embedded in rare-earth-dependent sectors, there exists considerable exposure to force majeure risks, contractual non-performance, and investor litigation. As a result, multinational entities are now embedding supply chain due diligence and resource origin traceability within their environmental, social, and governance (ESG) frameworks to future-proof their operational continuity.
Western governments are now undertaking robust strategic interventions to repatriate and re-shore REE supply chains. In the United States, The Defence Production Act has been invoked to classify REEs as “critical minerals”. Similarly, the European Raw Materials Alliance (ERMA) seeks to establish a sovereign and sustainable rare earth infrastructure to insulate member states from unilateral disruptions. Australia’s rare earth sector, led by firms such as Lynas Rare Earths Ltd., is being seen as a counterweight to Chinese resources.
Rare Earth Elements are the alchemists of the modern age, fuelling the engines of green power and the digital world. However, the world’s overreliance on one gatekeeper is an Achilles’ heel. A push push for diversification, ethical sourcing, and sustainable processing is no longer optional—it is imperative. Securing resilient and tangible REE supply chains will define the viability of a sovereign, and sustainable global future.
Dhanishtha De is a trainee journalist at Cult Current. The views expressed in the article are
her ownand do not necessarily reflect the official stance of Cult Current