RAJIV GANDHI NATIONAL UNIVERSITY OF LAW,

PUNJAB

POLITICAL SCIENCE-II

“RARE EARTH MINERALS: THE NEW STATERGIC RESOURCES IN

GLOBAL CONFLICTS”

A RESEARCH PAPER

SUBMITTED BY: SUBMITTED TO:

AVNI, 24034 DR SHVETA DHALIWAL,
DIMPLE, 24127 ASSISTANT PROFESSOR OF
ANANYA, 24171 POLITICAL SCIENCE,
RGNUL.
SENTINARO, 24179
DR SOURAV KUMAR,
ASSISTANT PROFESSOR OF
POLITICAL SCIENCE, RGNUL.
 DECLARATION

I hereby declare that the project entitled “RARE EARTH MINERALS: THE NEW
STRATEGIC RESOURCES IN GLOBAL CONFLICTS” submitted to Rajiv Gandhi
National University of Law, Punjab, Patiala, is an outcome of our original work carried
out under the supervision of Dr. Shveta Dhaliwal and Dr. Sourav Kumar. The project is
entirely based on our own research work and has not been submitted elsewhere. All the ideas
and references have been duly acknowledged. To the best of my understanding, the project is
free from plagiarism.

Avni Shukla

Dimple Punia

Ananya Aggarwal

Sentinaro Jamir

Rajiv Gandhi National University of Law, Punjab,

Patiala

11 April, 2025
 SUPERVISORS CERTIFICATE

This is to certify that the project entitled “RARE EARTH MINERALS: THE NEW
STRATEGIC RESOURCES IN GLOBAL CONFLICTS” submitted to Rajiv Gandhi
National University of Law is a research work carried out by Avni, Dimple, Ananya and
Sentinaro under my supervision and guidance. As certified by the candidates, no portion of
this study has been submitted to any University for the grant of any Degree or Diploma.

Dr. Shveta Dhaliwal

Assistant Professor of Political Science

Dr. Sourav Kumar

Assistant Professor of Political Science

Rajiv Gandhi National University of Law, Punjab

Patiala

11 April 2025
1.Introduction
Background and Significance of Rare Earth Minerals
Rare earth minerals are a collection of 17 chemical elements that are primarily located in the
Earth's crust. Because they are referred to as "rare," they are not necessarily rare, but are
dispersed and hard to get in a pure state. Some of these minerals are referred to as
neodymium, dysprosium, terbium, and lanthanum. Their unique magnetic and conductive
properties make them extremely crucial to contemporary technologies such as smartphones,
wind turbines, electric vehicles, medical equipment, and military systems.1

Rare earths play a more crucial role today in our global community and global economies.
Rare earths have been referred to as "vitamins" or "spices" for industry because an
infinitesimal amount can enhance the performance of many products to a great degree.
Electric motors in electric cars contain rare earth magnets, and wind turbines depend on them
to generate electricity. Even in the military, sophisticated munitions systems and information-
gathering devices utilize rare earth.

These minerals are significant not only because they are found in high-tech applications, but
also because several countries, headed by China, dominate most of the world's supply. This
uneven control is concerning to other nations because they depend on a single source for vital
materials. This has created national security, trade reliability, and finding new sources or
alternatives issues.

Rare earth minerals are significant and scarce in the global market. They are increasingly
being seen as not just resources but also strategic assets. They are being perceived by nations
the way they would have perceived oil or gold once. The minerals have the capability to
influence power, economy, and politics all over the world.2

1
Klinger, Julie Michelle. “WHAT ARE RARE EARTH ELEMENTS?” Rare Earth Frontiers: From Terrestrial
Subsoils to Lunar Landscapes, Cornell University Press, 2017, pp. 41–66. JSTOR,
http://www.jstor.org/stable/10.7591/j.ctt1w0dd6d.6. Accessed 11 Apr. 2025.

2
UMBACH, FRANK. THE NEW “RARE METAL AGE”: NEW CHALLENGES AND IMPLICATIONS OF
CRITICAL RAW MATERIALS SUPPLY SECURITY IN THE 21st CENTURY. S. Rajaratnam School of
International Studies, 2020. JSTOR, http://www.jstor.org/stable/resrep25385. Accessed 11 Apr. 2025.
Research Methodology
The study evaluates secondary sources, such as academic articles, reports, and global policy
documents, through qualitative, case-based analysis. To understand how rare earths influence
global politics and commerce, it concentrates on noteworthy global occurrences related to
rare earth minerals, e.g., China's ban on exports to Japan (2010) and the U.S.–China trade war
(2019). For examining strategic behavior around rare earth access, the study relies on
resource politics and global relations.

Research Questions
1. What are the impacts of rare earth elements on world politics and commerce?
2. How is China's dominance of rare earth elements impacting world politics?
3. How have nations such as Japan and the United States responded to threats to the supply of
rare earth elements?
4. What does the "Rare Metal Age" portend for global power realignments, military, and
energy?

2.Understanding Rare Earth Elements

Definition, Types, and Classifications
Rare Earth Elements (REEs) consist of 17 metallic elements, which include the 15
lanthanides on the periodic table and scandium and yttrium. The elements are not rare within
the Earth's crust but are seldom occurring in large, exploitable amounts, as the name would
suggest. That is why they are economically and environmentally challenging to extract

These substances are known for their distinctive magnetic, fluorescent, and catalytic
characteristics that are essential to many modern technologies. REEs are generally divided
into two groups: Light Rare Earth Elements (LREEs) and Heavy Rare Earth Elements
(HREEs). LREEs—e.g., cerium, lanthanum, and neodymium—are more common and
generally easier to isolate. In contrast, HREEs—e.g., europium, dysprosium, and terbium—
are rarer and harder to isolate because they have the same chemical configurations

Both are needed in various technologies. Neodymium is employed, for instance, in high-
power magnets, while europium is employed in display screens. Both are presently vital to
technologies like electronics, renewable energy, and defense, hence supply is paramount to
technological and economic security 3

Physical and Chemical Properties

Rare Earth Elements share many physical and chemical properties in common since they
share similar electron configurations. The majority of the REEs are white, soft, shiny metals
that are ductile, flexible and do not break easily. They are highly resistant to melting and have
adequate electrical conductivity. Neodymium and samarium, among other REEs, are highly
magnetic and are utilized in the production of powerful magnets for windmills and
automobile motors.

Other materials, such as europium and terbium, emit light when exposed to UV light and are
applied in lighting and display technology. The materials are highly chemically reactive.
They oxidize rapidly when exposed to air and also react with acids and water, and thus it is
difficult to handle and store them.

Most of the rare earths carry trivalent ions (+3 charge), and because of the chemical
resemblance, they are hard to separate from one another—a requirement that is typically
susceptible to requiring sophisticated means like solvent extraction or ion-exchange
procedures. These unique materials are what make rare earths used in products such as fiber
optics, rechargeable batteries, and space technology. Although they are used in small
quantities in devices, they play a vital role in the functionality and performance of
contemporary technologies.4

Industrial and Strategic Uses of Rare Earth Elements

Rare earth elements (REEs) play a central role in technological developments and national
security because of their distinct chemical and magnetic properties. In non-defense industries,
REEs are the cornerstone of clean energy technologies. Neodymium (Nd) and dysprosium
(Dy) are the keystone elements for high-strength permanent magnets deployed in wind power

3
Dadwal, Shebonti Ray. “India’s Challenges in Accessing Critical Minerals.” Indian Foreign Affairs Journal, vol.
15, no. 2, 2020, pp. 108–24. JSTOR, https://www.jstor.org/stable/48630169. Accessed 11 Apr. 2025.

4
Klinger, Julie Michelle. “WHAT ARE RARE EARTH ELEMENTS?” Rare Earth Frontiers: From Terrestrial
Subsoils to Lunar Landscapes, Cornell University Press, 2017, pp. 41–66. JSTOR,
http://www.jstor.org/stable/10.7591/j.ctt1w0dd6d.6. Accessed 11 Apr. 2025.
turbines and EV motors, making energy conversion possible with low reliance on fossil fuel
(Charalampides et al., 2015). Terbium (Tb) and europium (Eu) are essential for efficient
lighting, specifically in LED phosphors and in compact fluorescent lamps, whereas cerium
(Ce) and lanthanum (La) act as catalysts in exhaust systems of automobiles and in refining
processes (Chen, 2011). Yttrium (Y) is predominantly used by the electronics industry for
stabilizing zirconia in oxygen sensors and in improving fiber-optic communication systems.
Advanced markets such as metallurgy and glassmaking utilize 59% of the world's REEs,
whereas new markets such as battery alloys and advanced ceramics use 41% of demand,
representing their increasing contribution to sustainable technologies.

Tactically, REEs are vital in defense and military uses. Samarium-cobalt magnets are part of
guided weapons and missile guidance systems, while gadolinium (Gd) and erbium (Er)
improve radar and sonar operations.Europium's use in night-vision technology and yttrium's
use in satellite communication highlight their value in contemporary warfare and espionage.
The U.S. Department of Defense has labeled REEs like dysprosium as key to national
security, citing almost complete reliance on imports.This dependency has amplified
geopolitical rivalry, as China uses its dominance of 95% of global REE production to dictate
supply chains, from extraction to final product manufacture To counter this, the U.S. and EU
have made a priority of measures such as the Defense Production Act and the European Raw
Materials Alliance to enhance local production and decrease vulnerabilities. 5

Global Distribution of Rare Earth Elements

The global distribution of REE reserves is highly uneven, shaping geopolitical dynamics and
supply chain strategies. China, despite holding only 37% of global reserves, dominates
production through its vast mining infrastructure, particularly in the Bayan Obo mine, which
supplies light REEs, and the ion-adsorption clays of Jiangxi, rich in heavy REEs; USGS,
2010). Brazil is now the largest reserve holder at 32% of worldwide deposits, mainly in
alkaline complexes like the Araxá carbonatite. The U.S. and Russia also possess major
reserves at 13% and 19%, respectively, with major deposits in California's Mountain Pass and
the Lovozero complex in the Kola Peninsula. Australia and Greenland are also key

5
Korteweg, Rem, and Vera Kranenburg. “Malaysia and Rare Earth Elements.” The Good, the Bad, and the Ugly:
Resource Nationalism, Geopolitics, and Processing Strategic Minerals in Indonesia, South Africa, and Malaysia,
Clingendael Institute, 2024, pp. 49–66. JSTOR, http://www.jstor.org/stable/resrep60355.7. Accessed 11 Apr.
2025.
participants, with Greenland's Kvanefjeld deposit of 38.5 million tonnes capturing Western
attention as a strategic option to Chinese supply .6

International trends in production mirror attempts to diversify supply chains. Lynas

Corporation in Australia and Malaysia itself produces 21,000 metric tons of rare earth oxides
(REOs) per year, while the re-opened Molycorp Mountain Pass mine in the U.S. plans for
40,000 metric tons by 2025. ASEAN countries such as Vietnam and Malaysia are also
attracting interest for overlooked reserves, with Japan and the EU making investments in joint
ventures to establish refining facilities. However, environmental challenges persist: REE
extraction often generates radioactive byproducts like thorium, complicating mining
operations and raising costs. Recycling remains limited, with less than 1% of REEs recovered
due to technical and economic barriers, prompting regulatory frameworks such as the EU’s
Critical Raw Materials List to incentivize sustainable practices.7

China's post-WTO strategy has moved from quotas on exports to managing downstream
industries, reinforcing its control over processing technologies and high-value products. This
strategy highlights the geopolitical need for countries to ensure diversified supply chains
through globalization alliances and investments in alternative reserves.8

3. Strategic Importance of Rare Earth Minerals

Role in Military and Aerospace Technologies
Because of their special physical and chemical characteristics, rare earth elements (REEs) are
now essential to contemporary military and aerospace systems. REEs, including neodymium,
praseodymium, and samarium, are essential for the production of high-performance
permanent magnets used in radar technologies, missile guidance systems, and precision-
guided bombs in defense applications. Neodymium-iron-boron (NdFeB) magnets, for
6
Tsafos, Nikos. “Safeguarding the Global Market for Critical Minerals.” Center for Strategic and International
Studies (CSIS), 2022. JSTOR, http://www.jstor.org/stable/resrep39857. Accessed 11 Apr. 2025.

7
Chen, Zhanheng. "Global Rare Earth Resources and Scenarios of Future Rare Earth Industry." Journal of Rare
Earths, vol. 29, no. 1, Jan. 2011, pp. 1–6. Elsevier, https://doi.org/10.1016/S1002-0721(10)60401-2.
8
Charalampides, Georgios, Apostolos Baklavaridis, Konstantinos Vatalis, and Nikolas-Plutarch Benetis. "Rare
Earth Elements: Industrial Applications and Economic Dependency of Europe." Procedia Economics and
Finance, vol. 24, Oct. 2015, pp. 126–135. Elsevier, https://doi.org/10.1016/S2212-5671(15)00630-9.
example, are essential to the navigation systems of nuclear submarines and the electric
motors of sophisticated fighter jets like the F-35 Lightning II because they maintain their
magnetic strength in harsh environments. 9Likewise, europium and terbium are necessary for
the production of phosphors in heads-up displays and night-vision equipment, which improve
situational awareness in low-light combat situations.10
REEs such as scandium and yttrium are utilized in aerospace to increase the heat resistance
and durability of alloys used in spacecraft components and jet engines. For instance, aircraft
constructions made of scandium-aluminum alloys are lighter while still being strong, which
immediately improves fuel economy and operational range. 11 Because of their indispensable
function in electronic warfare systems, satellite communications, and hypersonic weapons,
the U.S. Department of Defense has designated a number of rare earth elements (REEs) as
"critical minerals". 12Because of this strategic dependence, countries are working to ensure
steady supplies of REEs because disruptions could jeopardize technical dominance and
defense readiness.

Relevance in Consumer Electronics and Green Technologies

The demand for REEs has skyrocketed due to the widespread use of consumer electronics
and renewable energy systems. Electric vehicles (EVs), laptops, and smartphones all use
lanthanum for lithium-ion batteries, europium for LED panels, and neodymium for speakers
and vibration motors.13 About 0.35 grams of rare earth elements are found in one iPhone,
whereas up to 2.5 kg of neodymium-based magnets are used in an EV motor. 14This demand
is further increased by the green energy transition: solar panels use cerium and indium for
anti-reflective coatings,15 and offshore wind turbines need around 600 kg of REEs per
megawatt of power, mostly for generator magnets.
The availability of REEs is crucial to global efforts to reach net-zero emissions by 2050. For
example, rare earths are essential for hydrogen electrolyzers, fuel cells, and wind turbines,
according to the European Union's Critical Raw Materials Act. But supply issues are a major
concern. As dysprosium shortages jeopardize the scalability of high-efficiency EV motors,
neodymium demand is predicted to surpass supply by 250% by 2030. 16 Although there are
now no commercially viable alternatives, this has sparked research into recycling urban
mining and material substitution.17

Economic Leverage and Global Value Chains

Similar to OPEC's sway over the oil market, China has considerable geopolitical clout due to
its control over REE supply chains. As evidenced by the 2010 Japan embargo and the 2025
9
Mishra, Neha. "Defence and Civilian Applications of Rare Earth Elements." AIR POWER Journal, vol. 17, no. 3,
2022, pp. 115–127.
10
Unnam, Sai Pranay. "Rare Earth Elements: Its Defense Applications?" LinkedIn, 9 Jan. 2023.
11
"Short Review on Critical Rare Earth Materials in Aerospace Industry." AIP Conference Proceedings, vol. 3217,
2024, p. 040010.
12
U.S. Department of Defense. Annual Industrial Capabilities Report. 2025.
13
"The Increasing Demand for Rare Earth Elements." Anavo, 21 Nov. 2024.
14
Stanford Materials Corporation. "Rare Earths in Electronics." 2025
15
Columbia University Climate School. "The Energy Transition Will Need More Rare Earth Elements." 5 Apr.
2023.
16
China’s Rare Earth Dominance and What It Means for the World." Zimtu, 29 Nov. 2024.
17
The Rare Earth Problem: Sustainable Sourcing and Supply Chain Challenges." Circularise, 2025.
U.S.-China trade war, China, which controls 90% of the world's refining capacity and 69% of
its mining, has militarized rare earth exports during trade disputes. 18 By capturing Arctic
mining locations in Greenland and Russia, which contain 25% of the world's untapped REE
reserves, their "Polar Silk Road" strategy further solidifies control.19

Western countries are rushing to lessen their reliance. Under the Minerals Security
Partnership, the United States and Australia collaborated to build processing facilities and
reopened the Mountain Pass mine in California.20 Through initiatives like the LKAB mine in
Sweden, the EU hopes to source 20% of its REEs domestically by 2030.21
However, a "bottleneck" caused by China's vertical integration—from mining to magnet
production—makes disconnecting more difficult. For instance, because of China's
technological superiority, Australia's biggest producer, Lynas Rare Earths, continues to
transport raw ores to Malaysia for processing. 22
Two difficulties confront emerging economies like Brazil and India: avoiding neo-colonial
resource extraction while striking a balance between mining aspirations and environmental
concerns. The fifth-largest REE reserves in the world are found in India's monazite sands, but
the country is entirely dependent on imports due to antiquated laws and inadequate refining
capacity23. In the twenty-first century, ownership of REEs will increasingly determine
economic power and technological sovereignty as they become the "oxygen" of the digital
era.

6. GEOPOLITICAL STRATEGIES IN RARE

EARTH SECURITY
Resource Nationalism and Economic Security Laws
Rare earth elements are being seen more and more through the prism of national security by
nations, which has led to the growth of resource nationalism policies intended to safeguard
strategic interests. The most notable example is China's export restrictions, where Beijing has
put in place a complex system of licenses, quotas, and outright prohibitions on specific
materials to strategic competitors.24 These policies are justified under China's Export Control

18
García-Vazquez, Gilberto. "Securing Supply Chains: The Strategic Role of Rare-Earth Elements." OEC, 31 May
2024.
19
Home, Andy. "China Primes Rare Earths as a Weapon as Trade War Escalates." Reuters, 11 Apr. 2025.
20
China Currently Controls Over 69% of Global Rare Earth Production." Mining Technology, 17 Jan. 2025.
21
"Rare Earth Elements: Strategic Importance and Reducing Import Dependence." ForumIAS, 28 June 2022.
22
"How Rare Earths Dictate Strategic Interests of India in Defence." Defence Capital, 12 Sept. 2020.
23
"Rare Earth Elements: List, Applications, Uses & Properties." Vajiram & Ravi, 9 Feb. 2025.
24
"China Hits Back at U.S. Tariffs with Rare Earth Export Controls." Reuters, 4 Apr.
2025, https://www.reuters.com/world/china-hits-back-us-tariffs-with-rare-earth-export-controls-2025-04-04/.
Accessed 05 Apr. 2025.
Law, which emphasizes national security and strategic interests as legitimate grounds for
trade restrictions.25

In response, the US developed its own framework for resource nationalism. Significant tax
breaks and subsidies are offered for domestic rare earth production and processing through
the Critical Minerals Strategy and the 2022 Inflation Reduction Act. By strengthening the
resilience of vital supply chains, these strategies seek to lessen reliance on outside
sources.26 In a similar vein, the European Union has put into effect the important Raw
Materials Act, which sets targets for domestic processing of rare earths and other important
minerals as well as strategic autonomy goals.27

The most thorough foundation for resource security may be found in Japan's response to the
2010 crisis. As an example of how focused policies can successfully lessen strategic
dependence over time, the Japanese government created new regulatory frameworks and
financial incentives especially to address rare earth vulnerability.28

Strategic Stockpiles and Reserves

Creating strategic reserves has become a vital part of security plans for rare earths. As part of
its policy framework to guarantee reserves of vital minerals, Japan started methodically
accumulating rare earths after the 2010 crisis. 29In addition to giving time for the development
of alternate sourcing techniques, this strategy served as a buffer against future price volatility
and supply disruptions.
Japanese businesses that kept their stocks intact during the 2010 crisis were able to react to
the disruption in supply with greater flexibility. These stockpiles demonstrated the usefulness
of strategic reserves in times of geopolitical unrest by enabling businesses to maintain
production while looking for substitute sources.30 The European Union and the United States
25
Home, Andy. "China Primes Rare Earths as a Weapon as Trade War Escalates." Reuters, 11 Apr.
2025, https://www.reuters.com/world/china/china-primes-rare-earths-weapon-trade-war-escalates-andy-
home-2025-04-11/. Accessed 05 Apr. 2025.
26
Villalobos, Fabian, and Lyle Trytten. "Rare Earth Minerals: The New Strategic Resources in Global
Conflicts." Time, 11 Apr. 2025, https://time.com/7275818/rare-earth-china-tariffs-metals-minerals/. Accessed
31 March 2025.
27
Home, Andy. "China Primes Rare Earths as a Weapon as Trade War Escalates." Reuters, 11 Apr.
2025, https://www.reuters.com/world/china/china-primes-rare-earths-weapon-trade-war-escalates-andy-
home-2025-04-11/. Accessed 05 Apr. 2025.
28
World Economic Forum. "How Japan Strengthened Its Rare Earth Minerals Supply Chain." World Economic
Forum, 2023, https://www.weforum.org/stories/2023/10/japan-rare-earth-minerals/. Accessed 07 Apr. 2025.
29
World Economic Forum. "How Japan Strengthened Its Rare Earth Minerals Supply Chain." World Economic
Forum, 2023, https://www.weforum.org/stories/2023/10/japan-rare-earth-minerals/. Accessed 07 Apr. 2025.
30
https://ndisc.nd.edu/assets/344352/
market_structure_and_economic_sanctions_the_2010_rare_earth_elements_episode_as_a_pathway_case_of
_market_adjustment.pdf
have both established strategic stockpiling programs in response to the Japanese experience,
which has impacted other countries' approaches to rare earth security.
Although financial limitations have hampered its usefulness, the United States has added rare
earth elements to its National Defense Stockpile. Additional procedures for creating strategic
stockpiles of resources considered vital to national security have been made available under
the Defense Production Act. These initiatives show that market forces might not be enough
on their own to guarantee resource security for commodities of major strategic importance. 31

Supply Chain Diversification and International Alliances

One of the most important tactics for lowering the vulnerabilities of rare earths is the
diversification of supply sources. With the help of government loan guarantees and equity
investments, Japan's post-2010 strategy involved mining development and the acquisition of
stakes in rare earth projects in Australia and other countries. 32This method demonstrated the
potential efficacy of properly implemented diversification methods by assisting Japan in
reducing its reliance on Chinese rare earths from 90% to roughly 60%.33

Western countries have increasingly realized their concerning dependence on China for rare
earth supplies, following Japan's example. under the US, Australia, and Canada, a number of
projects are in progress to increase production capacity through new mining operations. The
supply chain is vulnerable because so few projects have been commercially viable and even
fewer can match China's economies of scale.34

International partnerships have become a supplementary strategy to domestic initiatives.

Thirteen nations join the U.S.-led Minerals Security Partnership to coordinate investments in
vital mineral supply networks. In a similar vein, working groups aimed at lowering common
vulnerabilities in rare earth supply chains have been formed by the EU-US Trade and
Technology Council. These global initiatives acknowledge that it is impractical for any one
nation to produce and process rare earths entirely on its own.35
31
"China Hits Back at U.S. Tariffs with Rare Earth Export Controls." Reuters, 4 Apr.
2025, https://www.reuters.com/world/china-hits-back-us-tariffs-with-rare-earth-export-controls-2025-04-04/.
Accessed 05 Apr. 2025.
32
World Economic Forum. "How Japan Strengthened Its Rare Earth Minerals Supply Chain." World Economic
Forum, 2023, https://www.weforum.org/stories/2023/10/japan-rare-earth-minerals/. Accessed 07 Apr. 2025.
33
World Economic Forum. "How Japan Strengthened Its Rare Earth Minerals Supply Chain." World Economic
Forum, 2023, https://www.weforum.org/stories/2023/10/japan-rare-earth-minerals/. Accessed 07 Apr. 2025.
34
Home, Andy. "China Primes Rare Earths as a Weapon as Trade War Escalates." Reuters, 11 Apr.
2025, https://www.reuters.com/world/china/china-primes-rare-earths-weapon-trade-war-escalates-andy-
home-2025-04-11/. Accessed 05 Apr. 2025.
35
Ozbalaban, Mete. "Rare Earth Elements: New Front in US-China Trade Wars." Anadolu Agency,
2023, https://www.aa.com.tr/en/americas/rare-earth-elements-new-front-in-us-china-trade-wars/3534271.
Innovation in Substitution and Recycling Technologies
Innovative technologies present encouraging avenues for lowering reliance on rare earth
elements. The development of technologies to decrease the use of rare earth elements and the
investigation of substitute materials that might offer comparable functionality without
requiring scarce elements were major components of Japan's post-2010 plan. Japan's rare
earth usage is currently around half of what it was prior to the crisis, demonstrating the
substantial impact of these initiatives.36

Another important strategy for lowering reliance on primary resources is recycling. By

making investments in recycling facilities and creating more effective extraction techniques,
Japan supported the recycling of rare earth elements. Although technical and financial
obstacles have kept recycling rates low worldwide, improvements in urban mining methods
hold promise for the recovery of essential elements from industrial wastes and electronic
trash.
Many of the changes implemented in the wake of the 2010 disaster have been incorporated
into industrial procedures ever since. Following supply disruptions, businesses developed
ways to cut back on their use of rare earths or create substitutes, which economists have
dubbed "demand destruction"—a permanent decline in consumption patterns. 37 This event
illustrates how supply chain weaknesses can spur innovation, which in turn lessens strategic
reliance.
Even with advancements in recycling and alternatives, there are still many obstacles to
overcome. Due to their special characteristics, rare earth elements are challenging to replace
in many high-performance applications. Significant research expenditure and possible
performance feature trade-offs are necessary for the development of commercially viable
alternatives. Similarly, the separation and purification of mixed rare earth streams from
complicated end-of-life items present technical problems for recycling operations. 38

Accessed 08 Apr. 2025.

36
World Economic Forum. "How Japan Strengthened Its Rare Earth Minerals Supply Chain." World Economic
Forum, 2023, https://www.weforum.org/stories/2023/10/japan-rare-earth-minerals/. Accessed 07 Apr. 2025.

37
Gholz, Eugene, and Llewelyn Hughes. "Market Structure and Economic Sanctions: The 2010 Rare Earth
Elements Episode as a Pathway Case of Market Adjustment." Review of International Political Economy,
2019, https://ndisc.nd.edu/assets/344352/market_structure_and_economic_sanctions_the_2010_rare_earth
_elements_episode_as_a_pathway_case_of_market_adjustment.pdf. Accessed 01 Apr. 2025.
38
Villalobos, Fabian, and Lyle Trytten. "Rare Earth Minerals: The New Strategic Resources in Global
Conflicts." Time, 11 Apr. 2025, https://time.com/7275818/rare-earth-china-tariffs-metals-minerals/. Accessed
21 March 2025.
To sum up, rare earth elements have become vital resources in geopolitical conflict, and their
significance goes well beyond their monetary worth. The cases studied show how strategic
advantage in international relations can be obtained by controlling these elements. In
response, nations have adopted a variety of strategies to improve supply security, from
technological innovation to resource nationalism. Strategies for securing dependable access
will become an increasingly important part of national security strategy as the geopolitical
relevance of rare earths is expected to increase due to the growing demand for these elements
worldwide brought on by the development of green technologies and sophisticated
electronics.