In light of all the recent developments in quantum computing, the increase in demand for sustainable energy storage solutions and magnets, the massive latent growth in AI and the search for peace in the Ukraine, rare earth minerals (and the trading of them) have become a hot talking point in business and trade circles.
So what exactly are rare earth minerals?
Rare earth minerals are a group of 17 chemically similar elements, including neodymium, dysprosium, lanthanum, and cerium, that are critical to modern technology and clean energy solutions. Despite their name, most are relatively abundant in the Earth’s crust, but they are rarely found in concentrated, economically exploitable forms.
These minerals play a vital role in the manufacturing of high-performance magnets used in electric vehicle (EV) motors, wind turbines, and headphones. Neodymium and dysprosium, in particular, are essential for producing strong permanent magnets that are compact yet powerful. Rare earths are also used in the production of batteries, particularly in nickel-metal hydride batteries found in hybrid vehicles.
In the electronics sector, they are crucial for making smartphones, computers, flat-screen displays, and optical lenses. Europium and terbium are used to produce vivid colours in LED screens and compact fluorescent lighting. Lanthanum is a key component in camera lenses and optical glass.
Rare earths are also important in defence technologies—used in missile guidance systems, jet engines, and radar equipment. As global demand for green and digital technologies rises, rare earth minerals have become strategic resources for energy transition and national security.
So, who are the big players in the rare earth minerals production game?
At this point in time, the global production of rare earth minerals is completely dominated by China. The only other large players in the game are the US and Myanmar, formerly known as Burma, but at a much lower level of production. Currently global demand for rare earth minerals exceeds supply by a considerable margin. In this instance it is easy to understand just how important China's stranglehold on rare earth mineral production could turn out to be in the ongoing tariff war playing out between the US and China at present.