Rare Earths: Supply, Uses and Geopolitical Strain

Rare earth elements (REEs) are central to modern technology, renewable energy and geopolitics, and a global scramble for supply has intensified.
The 17 REEs include scandium, yttrium and the 15 lanthanides. While some, like cerium, are geologically abundant, economically viable deposits are scarce because elements occur in low concentrations and are costly to extract. The USGS estimates about 110 million tonnes globally—enough for centuries at current consumption—but processing massive volumes of ore drives high costs.
REEs have unique magnetic, catalytic and optical properties that are hard to substitute. They enable powerful, lightweight permanent magnets in EV motors and wind turbines, color phosphors in displays, and catalytic functions in automotive converters. Typical figures: a hybrid car may contain about 1 kg of REEs; a 5 MW wind turbine can require up to roughly 1,000 kg, dominated by neodymium and dysprosium.
Reserves are geographically concentrated: China holds roughly 36% (with the giant Bayan Obo deposit), Brazil 21%, Vietnam 19% and Russia 10%. China’s integrated mining, processing and refining capacity has given it de facto control of the value chain and prompted export restrictions that raised global supply concerns.
The US, Japan, Australia and India are coordinating to build alternative supply chains—mining, technical support and investment—but large-scale refining capacity and recycling infrastructure remain the critical gaps.