Rare earth elements have become a cornerstone of much modern technology, granting nations with abundant reserves and advanced processing capabilities considerable financial, political and military leverage.
Why It Matters
The 17 rare earth elements, consisting of 15 lanthanides, along with scandium and yttrium, have distinctive magnetic and electrochemical characteristics which make them critical for a number of technologies, particularly those in emerging fields such as artificial intelligence and green energy.
Countries with substantial reserves of rare earth elements-or simply "rare earths"-therefore have a strategic advantage in the next stage of technological development. Their increasing centrality to the global economy also grants those with deposits, and the extraction and processing infrastructure necessary to capitalize on these, significant economic influence.
What to Know
As illustrated in the map below, based on data from the latest U.S. Geological Survey report on rare earths, China holds the world's largest rare earth reserves, estimated at 44 million metric tons. It also leads in production, generating 270,000 metric tons in 2024.
According to the Oxford Institute for Energy Studies, China currently dominates the rare earth supply chain, producing 70 percent of the world's supply and handling 90 percent of global rare earth ore processing.
This dominance of the discovery-to-production-to-export chain gives the country enormous control over rare earth prices globally, and the U.S. remains heavily reliant on imports from China.
China's developing its rare earth reserves and reducing exports led to global prices of these elements rising in 2016, and experts have warned that its recent ban on certain processing technologies could have exposed a significant military vulnerability for the U.S.
After China, India, Russia and Vietnam have the largest rare earth reserves, estimated at 6.9 million, 3.8 million, and 3.5 million metric tons, respectively.
Although Ukraine's rare earth resources have drawn significant attention-particularly amid the ongoing negotiation between Volodymyr Zelensky and President Trump-the country does not rank among the top 10 holders of these reserves worldwide.
Greenland, however, which Trump recently said the U.S. would acquire "one way or the other," has a significant stockpile, estimated at 1.5 million tons, narrowly behind America's 1.9 million-ton reserves.
What People Are Saying
"Rare earth minerals are among the critical minerals that are crucial for advanced technologies, such as semiconductor chips, clean energy and energy storage technologies, as well as defense systems," Jane Nakano, Energy Security and Climate Change fellow at the Center for Strategic and International Studies, told Newsweek.
"For nearly 40 years, the U.S. has grown increasingly dependent on China for both raw and refined rare earths. This dependency arose as the U.S. chose to forgo domestic mining and refining, unwilling to bear the significant investment and environmental costs," said Ryan Kiggins, a political science professor at the University of Central Oklahoma. "This level of dependence gives China immense leverage over the U.S. in any conflict, whether trade, military, or political."
Eldur Ólafsson , CEO of the Greenland-focused mining company Amaroq, told Newsweek: "Greenland's vast mineral potential represents an opportunity for the West to secure a supply of essential critical minerals – needed for batteries, industrial development and AI infrastructure – and reduce dependence on China."
What Happens Next
The U.S. has expressed its commitment to expanding its capacity for rare earth extraction and processing. In one of the first executive orders of his new administration, Trump said that the country would work to "establish [its] position as the leading producer and processor of non-fuel minerals, including rare earth minerals, which will create jobs and prosperity at home, strengthen supply chains for the United States and its allies, and reduce the global influence of malign and adversarial states."
Many believed last Friday's Oval Office spat had jeopardized the minerals deal between the U.S. and Ukraine-which would grant the former 50 percent of the future revenues from Kyiv's natural resource assets, including rare earths. However, during his Tuesday address to Congress, Trump said that Zelensky was still open to this agreement, a statement corroborated by the Ukrainian leader.
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This story was originally published March 6, 2025 at 5:20 AM.