The Next Oil?: Rare Earth Metals

Rare earth metals (REM) are increasingly becoming a critical strategic resource. The 17 elements can be found in most high-tech gadgets, from advanced military technology to mobile phones. China currently holds claim to over 90 percent of the world’s production. As global demand increases, Beijing’s export reductions in recent years have forced high-tech firms to relocate to China and forced other governments to pour money into their exploration and production. An emergent India is among those concerned about China’s control of rare earths. In the past 12 months, the geopolitics of rare earths has become evident. REMs are becoming a strategic resource over which the two emerging giants are competing in Asia. Indeed, one might say rare earths are fast becoming “the next oil.”
The name, rare earth metal, is a misnomer. The metals are, in fact, far more abundant than many precious minerals. Yet their dispersion means they are rarely found in economically viable quantities. The similarity of chemical properties of the 17 REMs, demonstrated by their close proximity on the periodic table, makes them very difficult to separate. Their extraction is capital- and skill- intensive. End uses for REMs are varied but recent figures cited by the U.S. Geological Survey noted that in the U.S. the end use was predominantly for battery alloys, ceramics and magnets, sectors that are continuing to grow to cater for high-tech industry. The extent to which REM’s are used in defense technology is such that without their production modern warfare—fighter jets, drones, and most computer-controlled equipment—would have to undertake a lengthy process of redevelopment. A sovereign monopoly of such a resource is therefore a serious concern for any nation. (more)

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