**Global**: A recent analysis indicates that China leads in rare earth element reserves and production, holding 70% of global supply. The U.S. faces strategic risks from dependence on Chinese resources, prompting plans to boost domestic production amid shifting geopolitical alliances.
A comprehensive analysis of global rare earth element (REE) reserves reveals an increasingly competitive landscape where resource availability is tightly linked to technological advancement and economic influence. Recent data published by the U.S. Geological Survey has categorised the countries with the most substantial rare earth reserves, highlighting China’s dominant position.
China is reported to possess the largest reserves globally, estimated at 44 million metric tons, and leads production with projections of 270,000 metric tons to be generated in 2024. The Oxford Institute for Energy Studies underscores China’s stronghold, noting that it currently produces approximately 70 percent of the world’s supply and oversees 90 percent of global rare earth ore processing. This monopoly over the supply chain allows China to exert significant control over the market, affecting pricing and availability.
Following China, the countries with the next largest reserves include India with 6.9 million metric tons, Russia at 3.8 million metric tons, and Vietnam with 3.5 million metric tons. Ukraine has gained attention for its rare earth resources amid ongoing geopolitical discussions, though it does not rank among the top ten reserves. Conversely, Greenland possesses a significant stockpile of 1.5 million tons, closely trailing the United States, which has reserves estimated at 1.9 million metric tons.
The significance of rare earth elements is underscored by their crucial role in the advancement of multiple technologies, notably within the semiconductor, clean energy, and defence sectors. Jane Nakano, an Energy Security and Climate Change fellow at the Center for Strategic and International Studies, articulated the importance of these minerals by stating that they are “among the critical minerals that are crucial for advanced technologies.” She further noted the U.S. dependence on China for both the raw and refined versions of these resources, a situation rooted in historical reluctance to invest in domestic mining and refining capabilities.
This reliance poses strategic risks, as highlighted by Ryan Kiggins, a political science professor at the University of Central Oklahoma, who remarked, “This level of dependence gives China immense leverage over the U.S. in any conflict, whether trade, military, or political.”
Eldur Ólafsson, CEO of Amaroq, a mining company focused on Greenland, asserted, “Greenland’s vast mineral potential represents an opportunity for the West to secure a supply of essential critical minerals,” which could help mitigate reliance on Chinese resources and enhance industrial development in sectors such as artificial intelligence and battery production.
In response to these dynamics, the U.S. administration has announced intentions to expand its domestic capacity for rare earth extraction and processing. President Donald Trump indicated a commitment to establish the nation as a leading producer of non-fuel minerals, asserting that this strategy would generate jobs, strengthen supply chains, and diminish the influence of adversarial states.
Recent discussions have also included negotiations for a minerals deal between the U.S. and Ukraine, which would allow the former to secure significant future revenue from Ukraine’s natural resource assets. Despite tensions surrounding the agreement, Trump confirmed during a recent congressional address that there remains an openness from Ukrainian President Volodymyr Zelensky to pursue this partnership.
The growing emphasis on rare earth elements highlights the intricate interplay between resource availability, technological progress, and international relations, shaping the future of both global economies and geopolitical alliances.
Source: Noah Wire Services
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