You’ve probably heard about rare earth elements, or rare earths, that group of 17 elements that appear in so many of the products that are central to our daily lives. Everything from cell phones to televisions to cars contain rare earths. But did you know that China controls more than 90 percent of the global refined market for rare earths? As potential trade war between the United States and China continues to escalate, China sees its control over rare earths (even those that are mined elsewhere) as a key negotiating tool. Without those exports, production lines across the world will shut down. How did we get here? Well, some might say that the United States has been asleep at the wheel, failing to recognize the value of maintaining its own supplies of what could legitimately be deemed an essential product for national security. Others might take a strictly economic view of the situation and point out that China can mine and process rare earths much more efficiently and cheaply than the United States. In a world of free trade, it made sense to simply buy rare earths from China if can provide this resource at a lower cost. Now, though, the United States is scrambling for solutions. Donald Trump’s newly imposed tariffs against China would make the cost of importing rare earths at least 145 percent more expensive, if they are available to be imported at all. At the same time, the uncertainty over what comes next in the trade war is limiting any investment in domestic production. Moreover, even if U.S. companies can get around environmental concerns about pollution and radioactive waste and do invest in the United States, it would take years to develop enough capacity to meet demand.
It hasn’t always been this way. In the 1980s, the United States actually extracted and processed much of its own rare earth elements, but as China emerged as a far more efficient and less costly source, operations in the United States closed down. Now though, given the huge number of products that contain rare earths, demand is higher than ever. One possible solution that is gaining some traction is to focus on recycling the rare earths what we already have. In other words, finding a way to extract rare earths from discarded cell phones, batteries, and other forms of electronics. This solution would not only provide a more cost-efficient alternative to Chinese imports, but also the added benefit of reusing existing resources. However, recycling comes with its own costs, which until now have been prohibitively high. Furthermore, just as with reestablishing the extraction and processing industry, getting a viable recycling industry up and running would be time consuming.
Discussion Questions:
1. China has spent years developing its dominance in the production of rare earths. Now, the United States has found itself in the uncomfortable position of being dependent on an adversary for a product that is used in many everyday items. Where does this leave the United States? Has the United States been asleep at the wheel?
2. The White House has suggested that accessing rare earth elements in Ukraine and Greenland could be valuable to meeting U.S. demand. Discuss this approach to reducing the current reliance on China. What advantages do you see? Are there any drawbacks?
Sources| YouTube: https://www.youtube.com/watch?v=XoATMsUcxrQ; CNN: https://edition.cnn.com/2025/04/22/world/video/rare-earth-minerals-china-trade-trump-tariffs-digvid; BBC UK: https://www.bbc.co.uk/news/articles/c1drqeev36qo; Unsplash: Photo by James Lewis on Unsplash