Rare earth elements are some of the most indispensable materials in modern technology. These 17 elements from the periodic table, such as gadolinium, praseodymium and lanthanum, play critical roles in national security weapon systems while spanning many sectors of the global economy, including IT, transportation and telecommunications.
Because of their value, and often scarcity, rare earth elements are highly controlled by governments and are subject to sensitive negotiations. The U.S. and China, two of the world’s largest economies and trade partners, had a breakthrough in trade negotiations over rare earth elements as they recently agreed to lift restrictions on their export, according to Politico.
China controls almost all of the world’s rare earth elements and since December has placed export restrictions on 11 such minerals, including gadolinium, terbium and lutetium. China announced it is approving exports of rare earth elements while the U.S., in response, resumed shipments of export-controlled items such as semiconductor design programs and aircraft engines.
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Are Rare Earth Elements Rare?
Rare earth elements aren’t necessarily rare, despite their name. Many are more common than gold, according to International Business Times. But what makes rare earth elements valuable to China is that it exclusively processes and refines many of them into useful material. China controls 85-to-90-percent of world refining, processing ores even from international mines, Goldman Sachs says.
This isn’t by accident. China since the early 1990s has strategized to corner this market, taking advantage of investment, weak environmental rules and subsidies. China’s staggering control over rare earth elements gives it an advantage in trade negotiations, particularly in response to tariffs introduced by U.S. President Donald Trump in his second term. With up to 90 percent of refining capacity, as of 2023, and 69 percent of rare earth element production around the world, this allows China to manage repercussions from rising tariffs with relative ease.
Which Rare Earth Elements Are Most Important?
The U.S. Department of Energy considers lithium, nickel and cobalt, all used in batteries; as well as praseodymium, found in aerospace alloys; and terbium, in fiber optics; as the most critical and most liable to supply shocks.
Titanium, tantalum and tungsten are considered the most important rare earth materials in weapons systems, according to the Government Accountability Office. Critical components from rare earth elements such as neodymium-iron-boron magnets are extremely strong, can retain their strength at high temperatures and operate under extreme conditions, making them useful in weapons.
Tantalum has unique properties, such as being very resistant to corrosion and having a higher melting point, making it highly desirable for the liners of missile warheads. Rare earth elements are also used in radars, guidance systems, lasers, satellites and munitions.
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