As the world rushes to unlock the secrets of rare earth elements, the US is struggling to keep pace with China in the global race for these critical minerals. With demand soaring for cutting-edge defense tech and renewable energy, the stakes have never been higher.
The Global Race for Rare Earth Minerals
Rare earth materials are a bundle of 17 elements with tongue-twisting names like ytterbium and dysprosium. They are key components for a new era of technology, in high demand right now. The U.S. is losing the global race for these critical minerals, lagging behind its main competitor, China.
The Demand for Rare Earth Elements
One of the factors propelling the scramble for rare earth and critical minerals is the demand for sophisticated defense technology. Another factor is the shift to renewable energy generation within the next decade or so. And then there’s the continued demand for consumer electronics, such as smartphones and AI systems.
But the U.S. is struggling to secure these resources. The country has just a fraction of the lithium, gold, cobalt, and other minerals it needs, leaving it vulnerable. Most of these rare earths and critical minerals are owned, mined, processed, or controlled by China, which can withhold export of some metals to the U.S. for political reasons or in response to tariffs.
China has experienced rapid economic growth since adopting market-oriented reforms in the late 1970s.
The country's GDP grew from $150 billion in 1980 to over $14 trillion in 2020, making it the world's second-largest economy.
China's exports have driven its economic expansion, with the country becoming a major player in global trade.
The Belt and Road Initiative, launched by Chinese President Xi Jinping in 2013, aims to connect China with other parts of Asia, Europe, and Africa through infrastructure development.
China’s Aggressive Pursuit
China is aggressively searching for new sources of critical minerals, willing to go into conflict zones, such as the Democratic Republic of Congo, to get the metals. According to Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies in Washington, China is not looking to share its market with other countries.
A Shift in U.S. Strategy
The U.S. has been trying to find new sources of critical minerals through various means, including threatening countries and making executive orders. However, this approach is seen as unnecessary and counterproductive by some experts. Jose Fernandez, a senior State Department official for energy and the environment under the Biden administration, says that countries want U.S. investment and that threatening them creates political issues.
The Challenge of Commercial Viability
Even if the mineral deposits in certain countries have been identified, it’s not certain how commercially viable they are. Adam Webb, with Benchmark Mineral Intelligence, a London-based market analysis company, notes that it may take 10 or 20 years before the critical minerals come out of the ground.
A Long-Term Challenge
The global race for rare earth materials is on, and the U.S. is losing it. This is a long-term challenge that will require careful planning and strategy to address. The demand for these critical minerals will only continue to grow, and the country needs to find ways to secure its share of these resources before it’s too late.
The United States relies on a complex network of domestic and international resources to maintain its economic and military strength.
Ensuring the security of these resources is crucial for national stability and growth.
Key areas of focus include energy independence, strategic trade partnerships, and protection of critical infrastructure from cyber threats.
According to the U.S. Energy Information Administration, in 2020, the country's primary energy sources were petroleum (35%), natural gas (27%), and coal (11).
Strengthening resource security requires a multifaceted approach, involving government policies, private sector investments, and international cooperation.
