Rare lands are among the most critical raw materials on the planet, deeply integrated into technologies that support modern life. However, few people have heard about them or know what they are doing.
With unusual names such as gadolinium and inaccessible, rare earths are used in all areas – from semiconductors and iPhones to magnetic resonance imaging and cancer treatments. More recently, demand has been promoted by green technology that helps to reduce carbon dioxide emissions.
People have long been up to China for rare land – something that the country has used to its advantage to respond to the new trade war launched by US President Donald Trump.
China took advantage of its dominance in the supply chain to pay back US duties by limiting the exports of rare earths. The removal of these restrictions was a point of ignition in trade conversations between the two superpowers and threatened to undermine the 90 -day delicate tariff truce that agreed in May.
Restrictions on the flow of rare earths from China could have an impact on the entire US economy, including the military-industrial complex. The F-35 fighter aircraft requires more than 900 pounds (408 kg) of rare land, according to the US Department of Defense.
What are Rare Earths?
Rare land is a total of 17 metallic elementswhich are grouped because of their chemical similarities. Their visual, magnetic and electrical properties make them suitable for a wide range of applications. Terbio and theater, for example, allow vibrant colors on smartphone and TV screens, while the ability of the antenna to facilitate chemical reactions means that it is commonly used in catalytic converters to clean the car exhaust.
The neodymium and the practitioner have been used to create motors with permanent magnets. They can convert electricity stored into a battery in motion – to rotate the wheels of an electric vehicle, for example. They can also function in the opposite direction to convert movement into electricity, as from the rotation of the wind turbines.
How rare are rare land?
Unlike their name, rare land is actually quite common in the earth’s bark – the creek is more abundant than tin or lead. But the challenge is to find them at a fairly high concentration in one place so that mining is costly. Mining can be harmful to the environment, as large amounts of water and energy are required to separate rare earths from the rocks in which they are located. There is also the risk that they are extracted in contaminating local soil and groundwater, as rare earths are often found together with radioactive elements such as celestial and thorium.
What are the leading suppliers of rare earths?
The US was the world’s leading producer in the 1960s to 1980s, but retreated as China began to increase its efforts. Low -cost businesses have allowed the state of East Asia to flood the market with cheap rare earths and to consolidate an almost monopoly in the global supply chain.
China is responsible for about 70% of the quantities mined by mines. Produced 270,000 metric tons of rare land in 2024doubling its production within five years, according to data from the US Geological Services.
US came in second place with 45,000 tonnes. China’s sovereignty is based on the fact that it has almost half of the world’s rare land reserves, that is, deposits that can be financially extracted. Its stocks of 44 million tonnes are more than twice as many as those of the second Brazil.
The US is only seventh in the hierarchy, with about 1.9 million tonnes of stock. It also has little refining capacity. In fact, most countries are forced to send the rare earths that are mined for refinement in China, as it also dominates these materials.
How did China use its control over the rare earths?
China has long recognized its advantage in terms of rare land. Leader Deng Xiaoping said in 1992 that “the Middle East has oil, China has rare land”. Its sovereignty became evident in 2010, when it blocked exports to Japan for two months after a resurgence of a dispute over the maritime borders.
This triggered a long course of Japan trying to reduce its supply dependence with rare land on China, although it still restricts it only from 80% – 90% to 60%, former Finance Minister Takayuki’s Minister of Finance told Bloomberg News.
The central government of China is steadily controlling the production and exports of rare land. In recent years it has stretched its muscles as tensions have increased for access to semiconductors. At the end of 2023, China extended its limitations to the exports of technologies used to process rare land, enhancing its control over refining activities.
And now the country has exerted its influence on the supply of rare earths to pay back the duties that Trump has imposed on the imports of Chinese products in the US, as well as US restrictions on semiconductors and chip manufacturing technology.
How did China use the rare land as a weapon in the trade war?
In addition to Tit-For-Tat duties, China added 7 rare land and permanent magnets to its export control list in early April, which means that companies need to secure special licenses to send these materials abroad. As part of the expansion of the trade war, China suspended the exporting US export restrictions it presented in early April for species with military and political applications.
But it was confused about whether this suspension was extended to rare lands, and the US accused China of continuing to “drown” the offer. The restart of the traditions was at the top of the list of Americans’ wishes in the second round of commercial talks held in June.
In view of the discussions, the Chinese Ministry of Commerce said it had approved some applications for the export of rare earths, without specifying which countries or industries were covered. The process of securing an export license is opaque and difficult to verify, allowing officials to re -activate and disable these limits with low visibility from the outside world.
Many of the metals aimed at export restrictions are the so -called heavy rare earths, which are almost exclusively produced by China and are usually more valuable.
These include Loutteti, which serves as a catalyst for the breakdown of crude oil in oil refineries, and the scandal, which characterizes aluminum alloys used on civilian and military aircraft. Export checks exert pressure on US companies.
Tesla CEO Elon Musk said in April that Restrictions on exports of rare earth magnets had disturbed the production of humanoid robot Optimuswhich needs these materials for its arm engines. Meantime, Ford temporarily closed a factory in Chicago in May because it did not have rare land accessories.
The limits of exporting rare earths reflect similar restrictions set by China over the last two years in other critical minerals, such as Gallium, German, Graphite and antimony.
How does Trump try to boost American production of rare earths?
The US is dependent on China for 70% of rare land imports – Number that Trump wants to reduce by increasing domestic supply. In March, he signed an executive decree calling for emergency powers in times of war to expand American production and processing of critical minerals and rare earths. The aim is to provide more funding, loans and other investment support and to accelerate the licensing process of new projects.
Subsequently, Trump began in April for the US supply chain with critical minerals, ordering the Minister of Commerce Howard Lutnik to determine whether the country’s dependence on imports is a threat to national security and whether duties should be implemented. The results of the survey must be delivered within 270 days. Duties would not translate into an immediate increase in US supply.
There is only one functional mineral mines in the country currently: MP Mount Mountain Corp Mountain Mountainre -opened in 2018, in the Mohave desert, California. The launch of other projects would be a perennial and expensive process. Meanwhile, US companies that need rare land will probably pay more for their imports if new duties are imported – if China allows these materials to be exported.
Trump is looking for rare land beyond the US coast. Has focused on Greenland’s mineral wealthwhich has the eighth largest reserves of rare earths in the world, discussing a possible acquisition of Danish territory. The US has also signed an agreement to exploit Ukraine’s critical minerals. Trump has highlighted the European country as a source of rare earths, but does not have significant reserves that are internationally recognized as economically viable.