Rare earths are neither rare nor found in the Earth in their pure form. Rare earths are basically 17 elements of the periodic table which don’t include Lithium, Cobalt, or Nickel, which are mainly used in battery manufacturing.
Historically, rare earths were used in NiMH (Nickel-Metal Hydride) batteries. However, most modern batteries are Li-ion, which rely far less on rare earths.
Rare earths were used in the manufacturing of NiMH (Nickel Metal Hydride) batteries. However, most batteries today are Li-ion, which do not use rare earths.
Rare earths have wide applications as per the chart below
Rare earths are found across the globe, but high concentrations are distributed as detailed below
While rare earths do not occur in ore like distinct metals, their overall availability is:
- 3x that of Copper
- 2x that of Zinc
- 200x that of Platinum or Gold The major reasons they are called rare:
- The concentration is small, making it economically unviable with present extraction
- Refining is an even more troublesome process; the techniques are old, simple, crude, and highly environmentally damaging and dangerous.
- Mining and refining make other essential natural resources so contaminated that water and soil become rare for the surrounding area.
Detailed studies and pollution effects can be searched online using the following terms:
- Brine Extraction
- Cobalt Red
- Artisanal Mining
Studies and research have shown how badly it has affected the surrounding mining areas.
The main point of today’s war started in September 2010. The world saw for the first time the blunder they had made when China stopped the supply of rare earths to Japan over a geopolitical issue. The US realized what a mess they would be in in the future.
If we see the chart below, we will understand where the problem is.
We will realize from the above chart that no matter which country has rare earth mining, it is China that controls 85% to 90% of the world’s refining capacity.
● China has 50% of world mining.
● China has 90% of world refining
The world hardly learned from the Singapore-Malaysia water agreement. We should have learned from Singapore, who is running against time to become self-sufficient in fresh water without any freshwater resources before their 100-year Agreement/Treaty with Malaysia ends in 2061.
In 15 years, we have not realized how China can leverage the refining of rare earths for any and every negotiation. From Chart 1, we should realize that all war equipment, drones, and fighter jets need rare earths. As per estimates, one F-16 fighter jet needs 400kg of rare earths.
The USA is fighting a tariff war with CHINA which is difficult to win under the present refining scenario. We have to understand why CHINA had 90% of the world’s rare earth refining capacity and why the USA let it happen.
The main regions in China where refining is happening are:
- Bayan Obo (Inner Mongolia)
- Ganzhou (Province in Jiangxi)
Research was conducted, and the regions were found with:
a) Radioactivity
b) Deforestation & Soil erosion
c) Toxic chemical leaks in rivers, water bodies, and farmland
d) Leaching ponds
China is controlled by an iron fist with no media and no protests, so they could do the dirty work for the rest of the world. China is also managing NGOs, media, and environmental protest groups so no country could set up the refining capacity of rare earths in a democratic country.
The USA, under the Trump Administration, took the rare earth issue seriously and took a few known steps because demand is growing and could cripple the future:
- MP Materials Texas is into the mining and refining of rare earths. In August 2025, the DoD (Department of Defense) became their largest shareholder and invested heavily so it can expand capacity and cater to future defense demands.
- The US is securing mining rights in Australia and
- They are setting up ancillary processing and rare-earth-consuming units in Myanmar, helping diversify supply chains and reduce reliance on Chinese refining.
- President Trump’s visit to ASEAN countries was followed by a JAPAN trip in October 2025, securing much of the USA’s interest in rare earths.
- The USA agreement during the recent President’s visit to Southeast ASIA was specifically designed to counter China’s bargaining leverage and reduce the world’s dependence on China’s 85–90% refining capacity.
The USA will take 10-15 years to stabilize capacity and become self-sufficient. In the future, some of the possibilities could be:
a) Development of non-polluting technology for refining.
b) Alternative materials could be used in place of rare
c) We can install efficient & large capacity plants for the re-refining of used rare earths from old items, which is less polluting than refining from mining.
Till things stabilize for America, we will have a roller coaster future between the two superpowers.
