Rare Earth Minerals and US-China Trade Face Off

 

By

Dr. Somita Chakraborty

From the beginning of 2025, the US-China relation witnessing severe problems regarding rare earth minerals. Recently, China has begun to impose restriction on its rare earth mineral export. As a response, US president Trump announced to imposed all total 130% tariff on Chinese goods.

In this context, it becomes necessary to find out a few answers, they are,

1)      What are rare earth minerals?

2)      What is its importance? And

3)      Its connection with US-China trade face off

What are rare earth minerals?

‘Rare earth minerals’ are 17 metallic elements in the periodic table. These metals have unusual amount of conductive and magnetic properties. These qualities make them very useful when alloyed or mixed in small quantities with iron.

As the name suggest, ironically, these metals are not rare and are found in many places around the world. Some of them are as abundant as copper or tin.

Then why the name ‘rare earth’ given to them? They are mainly found mixed with one another or with radioactive elements, such as uranium and thorium. Because of their chemical properties, it is difficult to separate and purify them from other materials. There are two types of rare earths, categorized by their atomic weights: heavy and light. Heavy rare earths are more scarce. Moreover, current production methods are hazardous and generate lot of harmful waste, like, radioactive water, toxic fluorine, acids to extract just a small amount of rare earth metals.

What is its importance?

In the present-day world, rare earth elements are used in most of the technologies, which are essential in our daily life, for example, smartphones, LED lights, flat-screen TVs etc.

In the medical field, these elements are used to diagnose and treat various critical illness, for example, cancer treatments. Elements like Gadolinium is used in X-Ray and MRI scanners.

Yttrium, Terbium and Europium are used in various devices that have visual displays like, televisions, computer screens etc. These elements are also used in making materials that give off different colours.

These metallic elements are widely used in defence sector. Praseodymium is used to create stong metals for use in aircraft engines. Yttrium, Terbium and Europium are used in making control rods in nuclear reactors.

Magnets containing neodymium are used in green technologies like, wind turbines, hybrid cars etc. Elements like, Lanthanum and Cerium are used in the process of refining crude oil.

Therefore, scarce supply of rare earth element could easily modern day-to-day life.

Its connection with US-China trade face off

US is heavily reliant on China for these critical minerals. These elements are essential for the US military production, for example, in F-35 fighter jets, submarines, lasers, satellites, Tomahawk missiles and many other things.

China controls 61% mined rare earth production and 92% of the global production in the processing stage.

The US does not have the capability to separate rare earths after extraction. Therefore, the US is heavily dependent on China regarding supply of rare earth materials. According to reports, between 2020 to 2023, 70% of US imports of rare earth compounds and metals came from China.

In the year 2025, China imposed export control over total 12 rare earth elements, related magnets and materials. According to the new rule, foreign companies need approval from Chinese government to export product that contain even a small amount of rare earth element. Moreover, foreign countries and companies have to declare its intended use. From now onwards, China also required export license to export rare earth manufacturing technologies out of the country.    

On the issue, China stated that, ‘Provided the export license applications are compliant and intended for civilian use, they will be approved.’

For detail

What are rareearth minerals, and why are they central to Trump’s threats against China?

What are 'rare earths' used for?

History and Future of Rare Earth Elements