Rare earth geopolitics: global dynamics and strategic balance of power

Abstract

This article examines the multifaceted landscape of Rare Earth Elements (REEs), crucial components in traditional industries like glass and metallurgy, as well as pivotal in the growing green and digital economies. The transition toward a greener economy heavily relies on REEs for batteries, wind turbines, and solar panels. The global REE supply chain, dominated by China with nearly 95% of the world's reserves, introduces complexities and geopolitical considerations, and prompting nations like the United States and countries in the European Union to seek alternatives and reduce dependence on China's dominant control. The United States, once a key player in rare earth mining, now heavily relies on Chinese imports, posing national security concerns. This article examines the challenges and opportunities in the global rare earth elements market, addressing environmental controversies, geopolitical tensions, and the race for a secure supply chain. As nations handle the complexities of this critical industry, the pursuit of sustainable and geopolitically secure rare earth supplies emerges as a vital global concern.