Why rare earth elements matter more than you think
They are in your phone and your car, yet most people have never heard of them. As demand for clean energy and high-tech gadgets soars, rare earth elements have become more indispensable
In a world increasingly driven by smart technology, green energy, and digital connectivity, there is a quiet but essential force powering much of our modern lives – Rare Earth Elements (REEs).
You may not see them, but from the motor of your electric vehicle to the screen of your smartphone, rare earths are everywhere.
Yet, despite being in such high demand, rare earths remain a mystery for most people. What are they, why do they matter so much, and who dominates the supply chain of these vital resources?
"Though invisible to the naked eye, REEs are deeply connected to daily life. A single smartphone contains about eight different rare earth materials. These elements make it possible for our devices to be smaller, lighter, and more energy-efficient."
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To answer these questions, we must begin from the atomic level.
What are rare earths?
Rare earth elements refer to a set of 17 metallic elements – 15 lanthanides on the periodic table, plus scandium and yttrium. These elements are often grouped into two categories: Light Rare Earths (from lanthanum to samarium) and Heavy Rare Earths (from europium to lutetium). Each of these elements has unique properties that make them valuable for modern technologies.
The problem is that they are rarely found in concentrated, commercially viable deposits. That is what makes them expensive and strategically important.
While cerium, the most abundant rare earth, ranks 28th in abundance among all elements, the economic extraction of REEs remains a huge challenge. The separation process is both complex and costly.
Power behind technologies
Though invisible to the naked eye, REEs are deeply connected to daily life. A single smartphone contains about eight different rare earth materials. These elements make it possible for our devices to be smaller, lighter, and more energy-efficient.
But it is not just consumer electronics. Rare earths enable many green technologies developed to reduce emissions and improve energy efficiency. Neodymium, for instance, is used to produce the world's strongest permanent magnets. These magnets are crucial in electric vehicle motors, wind turbines, and even MRI machines.
"Rare earths do not just improve technology – they make it possible; without them, the spindle motors and voice coils of desktops and laptops would not be feasible," stated the recent US Geological Survey-USGS report titled 'Going Critical'.
From the converter in your car that relies on cerium to reduce harmful exhaust gases to the vibrant display on your flat-screen TV, where europium and terbium make it glow, all depend on REEs. Even the green energy sector – wind turbines, fuel cells, and electric vehicle batteries – owes much of its potential to these elements.
Global supply and the Chinese monopoly
In 1993, China accounted for just 38% of the global production of rare earths. Fast forward to 2011, and that figure had skyrocketed to 97%.
Throughout the 1990s and 2000s, the Chinese government made a concerted effort to dominate the rare earths market. It limited exports, enforced quotas, and tightly controlled mining operations. This gave China substantial leverage in the global tech supply chain.
According to a US government report, China's monopoly allowed it to raise prices by more than a hundred percent between 2009 and 2011. It caused panic in the industry and forced countries to scramble for alternative sources.
The Bayan Obo mine in Inner Mongolia is China's crown jewel, producing nearly 83% of the country's REE output. Other deposits are scattered across Sichuan, Shandong, Jiangxi, and Guangdong provinces.
But not all of it flows through legal channels. In 2024, it was estimated that the black market accounted for an additional 25% of China's official production.
While China dominates the scene, the rest of the world has not been idle. Brazil holds over 21,000,000 tonnes of rare earth oxide reserves.
In the United States, the Mountain Pass mine in California resumed production in 2011 after a long hiatus, and in India, monazite deposits are being actively tapped. Russia mines loparite, while Vietnam, Malaysia, and Thailand also contribute smaller volumes to the global supply.
But producing rare earth elements is not easy. Mining operations extract raw materials, and the processing, separation, and refining stages are critical and often where China maintains a dominant global position, particularly for rare earth elements.
This dominance came from significant processing capacity and infrastructure built up over time.
Case for recycling
Since rare earths are embedded in so many devices, it may seem logical to simply recycle them. But it is not that simple.
Modern electronics are complex, compact, and made from dozens of materials. Extracting a few grams of REEs from a phone or a laptop is time-consuming and often not cost-effective. Yet, experts argue that recycling must become a core part of the solution.
Experts suggest that some products, like rechargeable nickel-metal hydride batteries and large permanent magnets, can already be recycled using existing technology. These can contain up to 30% rare earths by weight, much higher than the richest ore bodies.
However, widespread recycling will require innovation in design, better infrastructure, and regulations that make recycling economically viable. With demand rising almost at 10% annually, and known reserves expected to last only until the mid-21st century at that pace, recycling is not optional; it is essential.
Environmental costs
Mining rare earths comes with significant environmental risks. The separation process often uses toxic chemicals and can generate radioactive waste. Improperly managed, this can lead to devastating ecological and human health consequences.
On top of that, many of the world's REE mining regions – especially in parts of China – have been criticised for poor labour conditions and lack of environmental safeguards.
The European Union has launched initiatives to identify new sources, invest in refining capacity, and support recycling. The United States has passed legislation to bolster domestic production, and Canada is positioning itself as a key global supplier. The push is not just economic; it is geopolitical.
While rare earths do not hit headlines like oil or gold, their strategic value far surpasses their appearance. They are, quite literally, the elements behind the elements – enabling the modern world to function, innovate, and evolve.
