Rare Earths, Rare Power: Inside the Global Battle for Strategic Minerals

"Rare Earth Minerals"— are not the very newest terms in the world of geopolitics and media, but they remain at the root of all the major economies. Almost 30 years ago, China's former leader Deng Xiaoping, famously stated, "The Middle East has oil; China has rare earths," highlighting China's vast reserves of these strategic minerals and kickstart a long-term strategy to dominate the global rare earth industry. But why do these minerals hold such significance? In reality, they are a group of 17 special metals—such as scandium and europium—found deep within the Earth’s crust that constitute what we call rare earth elements. Each plays a major role in the functioning of semiconductors, smartphones, fighter jets, aerospace technology, wind turbines, electric car motors, electronics, military equipment, and even medical devices like MRI scanners.

But the question rises: are they really as rare as they seem? Absolutely not. What makes the difference is the low concentration of these metals and the highly complex procedure of extracting and processing them.

Moreover, nations are using their resource advantage to create choke points for others. When we consider their availability, these metals don’t appear that rare. The race to secure rare earth supply lines has led nations to form new agreements and trade deals. Washington is also looking abroad for allies to avoid China’s monopoly, as seen earlier in U.S.–Ukraine resource extraction interests.

The U.S. has also partnered with Australia, which holds the world’s fourth-largest rare earth reserves, signing a critical minerals agreement to reduce dependency on China. The United States and Australia have announced a billion-dollar joint venture to mine, process, and refine critical minerals. Now, let’s see who dominates the field of rare earths. At present, global reserves of rare earths total around 110 million tonnes, of which China holds about 44 million.

It is followed by Vietnam (22 million tonnes), Brazil (21 million tonnes), and Russia (12 million tonnes). India holds about 6.9 million tonnes, Australia 5.7 million tonnes, and the U.S. 1.9 million tonnes.

China, the dominant player in the game, controls nearly 50% of rare earth mining and accounts for about 90% of global processing. China demonstrated its monopoly by restricting rare earth exports in retaliation for U.S. tariffs, eventually forcing the Trump administration to de-escalate. Beijing made a strategic move amid trade tensions and the Trump tariff dispute. India, which imports nearly 65% of its rare earth supplies, remains heavily dependent on China—a dependency Beijing continues to exploit. It’s not that India lacks rare earth reserves (6.9 million tonnes), but due to limited extraction and processing technology, China has maintained its lead for three decades.

Governments across the globe are now planning to explore new deposits, boost domestic rare earth production, and stockpile supplies in case of future shortages Investments in exploration, research, and development will eventually help secure supplies and move nations toward self-reliance—but not soon enough to overtake a player that has maintained its monopoly for decades. Indeed, it requires both time and money for technological exploration and production, as well as extensive effort.

India’s Samudrayaan Deep Ocean Mission also aims to explore polymetallic nodules containing manganese, copper, and other minerals to ensure energy security and protect national interests. This as in line with global efforts to secure supply chains for critical minerals.

With diversification as the cornerstone of energy and national security, nations are seeking alternatives to rely on in times of crisis and to counter China’s monopoly. However, such efforts are not always economically viable, given the relatively small quantities of rare earths required. Seeking alternatives to China will be costlier for nations new to this industry.

China, meanwhile, has already mastered the art of mining and processing these minerals. A new form of Cold War is emerging—one based on resource monopolies, supply chain control, mineral extraction, and trade dominance. Only those who master their resources, secure their availability, and maintain economic leverage will survive.