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China’s Rare Earths Battle: A New Global Power Play

Source: Meet the company that looks to gain a foothold where China dominates — rare earth elements (2025-11-22)

Amid rising geopolitical tensions and the push for technological independence, a new player is emerging in the global race for rare earth elements—crucial minerals essential for modern electronics, renewable energy, and defense systems. While China currently dominates over 60% of the world’s rare earth supply chain, recent developments suggest a strategic shift among other nations aiming to diversify sources and reduce dependency. The United States, Australia, and European countries are investing heavily in sustainable mining projects, recycling initiatives, and alternative extraction technologies to secure their supply chains. Notably, the U.S. Department of Energy announced a $35 billion fund to develop domestic rare earth processing facilities, aiming to establish a resilient supply chain by 2030. Australia’s Mount Weld mine has expanded its output, and European Union nations are collaborating on cross-border projects to develop local processing capabilities. Meanwhile, technological innovations such as deep-sea mining and urban mining (recycling from electronic waste) are gaining traction, promising to revolutionize the supply landscape. These efforts are driven by the increasing demand for electric vehicles, wind turbines, and advanced electronics, which rely heavily on rare earth elements. The geopolitical stakes are high, with countries recognizing that control over these critical resources could influence global economic stability and national security. As the world pivots toward a greener and more technologically advanced future, the competition for rare earths is intensifying, signaling a new era of resource diplomacy and strategic resource independence. Recent facts include: - The global rare earth market is projected to reach $20 billion by 2027, reflecting rapid growth driven by green technology demands. - China’s share of global rare earth exports has decreased slightly due to increased Western and Australian mining activities. - The U.S. aims to produce 20% of its rare earth needs domestically by 2025, up from less than 10% in 2020. - Recycling electronic waste now accounts for approximately 15% of global rare earth supply, with potential to increase significantly. - New international agreements are being negotiated to ensure fair and sustainable extraction practices, addressing environmental and social concerns. As nations race to secure these vital resources, the strategic landscape surrounding rare earth elements is transforming into a key front in global geopolitics, economic resilience, and technological innovation. The coming years will be critical in shaping a more diversified and sustainable supply chain, reducing reliance on China, and fostering international cooperation in resource management.

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