Rare Earths

The Hidden Backbone of Modern Power

Rare earth elements are the quiet enablers of our modern world. Though few people could name one, we depend on them every day — in our smartphones, electric vehicles, wind turbines, medical equipment, and even our national defense systems. These 17 elements, scattered thinly throughout the Earth’s crust, are not truly rare in nature — but economically viable deposits are, and that scarcity has made them strategically invaluable.

What They Are

The “rare earths” include 15 lanthanides along with scandium and yttrium. They share unique magnetic, luminescent, and electrochemical properties that make them essential in high-tech applications. Small amounts of neodymium and dysprosium create the powerful magnets inside EV motors and wind turbines. Europium and terbium light our screens. Cerium and lanthanum refine petroleum and polish glass. In defense and aerospace, these elements guide missiles, strengthen jet engines, and enable advanced sensors and lasers.

In short, without rare earths, the technology that defines the 21st century would look very different — and much less capable.

Why They Matter So Much

For decades, the United States led in rare earth mining and processing. That changed in the late 20th century when environmental and regulatory hurdles pushed much of the industry offshore. China stepped in — not only mining these elements but mastering the complex refining and separation processes required to make them usable. Today, China controls roughly 90% of the world’s refining capacity and dominates magnet manufacturing.

That dominance gives Beijing enormous leverage. As Michael Snyder recently wrote on LewRockwell.com, U.S.–China relations have deteriorated sharply — and rare earths sit at the heart of that tension. China’s ability to restrict exports, impose new licensing rules, or withhold key processing technologies has global consequences. A single policy shift can ripple through supply chains, disrupt automakers, and stall clean energy projects across the West.

Strategic Risk and Global Consequences

The implications go far beyond economics. Rare earths underpin advanced weapon systems, guidance technologies, and communications infrastructure. A disruption in supply could leave the U.S. and its allies vulnerable — not just in manufacturing, but in defense readiness. This reality is prompting renewed attention in Washington and other capitals. The U.S. Department of Defense has begun investing in “mine-to-magnet” initiatives, seeking to rebuild domestic capabilities that have long been ceded abroad.

At the same time, global manufacturers are racing to diversify supply lines. Australia, South America, and parts of Africa are expanding production. Recycling initiatives — recovering rare earths from old electronics and motors — are gaining traction. But these efforts take time, and rebuilding a full industrial ecosystem cannot happen overnight.

The Environmental Equation

Rare earth production is not just a matter of geopolitics; it’s also one of environmental balance. Extracting and separating these elements requires energy-intensive chemical processes that can generate waste and pollution. This reality partly explains why so much production shifted overseas decades ago — and why domestic reindustrialization must now pair strategic need with environmental responsibility. Cleaner refining technologies and stricter oversight will be essential if the U.S. is to become self-reliant without repeating past mistakes.

The Race Ahead

As the global energy transition accelerates, demand for rare earths is projected to surge. Electric vehicles, wind power, and digital infrastructure all depend on them. Analysts estimate that by 2030, demand for critical minerals — especially those that make high-efficiency magnets and batteries possible — could triple. Nations that control these materials will not only shape the next generation of technology, but also the balance of economic and military power.

The United States and its allies now face a defining question: will they regain control over the resources that power their future, or remain dependent on a single foreign source with competing interests?

Conclusion

Rare earths may be hidden in the ground, but their influence is everywhere — from the phone in your hand to the fighter jets that defend the skies. Their story is one of science, strategy, and sovereignty. As relations between the U.S. and China grow increasingly strained, rare earths have become both a symbol and a tool of geopolitical power. The race to secure them is, in many ways, the race to control the next era of technology itself.