The ongoing trade conflict between the United States and China has taken on a multifaceted dimension, primarily surrounding the pivotal issue of rare earth minerals. This situation has been underscored by the recent statements made by former President Donald Trump, who highlighted the US’s keen interest in the autonomous territory of Greenland. He emphasized that the United States requires Greenland urgently, as the island is home to rich reserves of critical minerals, including rare earth elements that are crucial for various technologies. In light of this context, Trump even initiated a “rare earth deal” with Ukraine, underscoring the strategic importance of these minerals to US foreign policy.
The contention regarding rare earths is not exclusively a hallmark of the current administration but has historical roots that stretch back several years. China has strategically positioned itself to dominate the market for rare earth minerals, effectively establishing near-total control over their production and distribution as part of a broader industrial policy aimed at cementing its status as a global economic powerhouse. This monopolistic hold has raised concerns among US policymakers, who are increasingly aware of the critical dependence on these materials sourced predominantly from China.
When delving deeper into what rare earths actually are, it becomes apparent that they comprise 17 metallic elements found on the periodic table, including scandium, yttrium, and various lanthanides. The moniker “rare earths” can be misleading; despite their name, these minerals are not particularly rare in terms of abundance within the Earth’s crust. In fact, they are found in greater quantities than gold. However, the extraction and processing of these elements are both complex and environmentally challenging, which has further complicated the landscape in which they are mined and utilized.
Rare earths play essential roles in modern technology, serving as integral components in devices ranging from smartphones and wind turbines to flat-screen televisions and LED lights. Moreover, their significance extends into crucial realms such as electric vehicle batteries and advanced medical equipment, including MRI scanners and oncology innovations. They are also indispensable for military applications, being vital for systems like the F-35 fighter jets, submarines, satellites, and numerous other defense technologies, as noted in a 2025 research study published by the Center for Strategic and International Studies (CSIS).
Despite their critical importance, the global production of rare earths is heavily dominated by China, which accounted for approximately 61% of mined rare earths and controlled about 92% of the global output during the processing stage. This monopolistic control has raised alarms in Washington regarding national security, especially considering the increasing technological rivalry between the two superpowers. Furthermore, rare earths are classified into two distinct categories based on their atomic weights: light and heavy. Heavy rare earths are more scarce, and the United States currently lacks domestic capabilities to effectively separate these materials post-extraction.
Gracelin Baskaran, a director at the CSIS, indicated that until recently, any heavy rare earths mined in California were sent to China for separation, highlighting the deep-rooted reliance on Chinese facilities. The trade war escalated in April when the Trump administration announced steep tariffs on Chinese imports, causing significant disruptions in this already fragile supply chain. Baskaran warned that China has shown a propensity to leverage its control over rare earths as a means of exerting pressure on the United States, especially in light of recent trade negotiations.
As of now, the United States has only one operational rare earth mine located in California. The threat of sanctions and export regulations from China has only become more pronounced, evident when Trump accused China of breaching a recent trade truce. Beijing’s continued enforcement of export controls on various rare earth minerals represents a severe challenge for the US, which has increasingly relied on Chinese imports for rare earth compounds—an alarming statistic that remained around 70% from 2020 to 2023, according to reports by the US Geological Survey.
Additionally, rare earth elements play a significant role in shaping US foreign policy vis-à-vis countries like Ukraine, Greenland, and Saudi Arabia. Baskaran remarked on Ukraine’s fledgling mining sector, noting that while it was a topic of discussions, a comprehensive mapping of economically viable mining opportunities in the region is still absent. This ongoing situation underscores the strategic importance of rare earths and the need for the United States to bolster its own domestic capabilities while navigating the complexities of international dependencies and geopolitical challenges.