Rare earth minerals are a prominent topic of contention in the US-China trade conflict. President Donald Trump reiterated his threat to seize the Danish island last month when he stated that the United States desperately needed Greenland. Under its ice sheet, the resource-rich island of Greenland has an abundance of important minerals, which also contain rare earth elements. Trump and Ukraine also inked a rare earth agreement.
The present government comes after the battle over rare earths. As part of its broader industrial program, China has been gaining almost complete control of the materials for years.
Are rare earths truly “rare?” What are they?
Yttrium, Scandium, and lanthanides make up the 17 metallic elements known as rare earths in the periodic table. Since the minerals are found all across the Earth’s crust, the term “rare earths” is a bit misleading. Although they are more plentiful than gold, their extraction and processing are challenging, expensive, and harmful to the environment.
What is the purpose of rare earths?
Rare earth elements are found in many of the devices we use on a daily basis, such as wind turbines, cellphones, LED lighting, and flat-screen televisions. They are also essential for MRI scanners, cancer treatments, and batteries in electric cars. The US military also depends on rare earths. According to a 2025 research note from CSIS, they are utilized in Tomahawk missiles, lasers, satellites, submarines, F-35 combat planes, and more.
What is the origin of rare earths?
According to the International Energy Agency, China accounts for 92% of the world’s processing output and 61% of the world’s mined rare earth production. Based on their atomic weights, rare earths may be divided into two categories: heavy and light. The United States lacks the capacity to handle the difficult job of separating rare earths after extraction, and heavy rare earths are increasingly scarce.
In the trade fight, why are rare earths important?
Trump said China broke a trade ceasefire last month on Truth Social on Friday. In response to Trump’s April announcement of “reciprocal tariffs” on Chinese exports, Beijing has maintained its export restrictions on seven rare earth minerals and related items. US officials had anticipated that China would relax export restrictions on some minerals after reaching a ceasefire in Geneva.
Given how much the US depends on China for rare earths, the export restrictions may have a significant effect. According to a US Geological Survey estimate, the United States accounted for 70% of its imports of rare earth metals and compounds between 2020 and 2023. In addition to China, rare earths are part of US foreign policy goals with Saudi Arabia, Greenland, and Ukraine.
