If you keep hearing about rare earths, it's because the world as we know it can't exist without them. These metallic elements power everything around us, from clean energy tech like EVs and wind turbines to next-gen technologies such as microchips and semiconductors, and even advanced weaponry. 

Here's a rundown of these essential but little-known minerals and why China's role in their global supply matters to everyone. 

What are rare earth elements (REEs)?

REEs, a key strategic resource often called the "industrial gold" or "mother of new materials," are indispensable to modern industry. They are not actually "earth" but a group of 17 elements on the periodic table, consisting of the lanthanoid series, and scandium and yttrium.

Known for their exceptional optical, electrical, and magnetic properties, rare earths can be combined with other materials to create a wide variety of advanced materials, significantly enhancing the performance and quality of products across industries, from smartphones and medical technology to semiconductors, solar panels, and defense.

Why are they so rare?

The challenge of obtaining rare earths lies not in their scarcity but in the complexity of mining and processing them. "Light rare earths occur visibly in rock minerals, while medium and heavy rare earths exist in ionic form – like tea aroma absorbed in leaf veins – hidden within clay particles," said Wang Xueqiu, a scientist at China's Ministry of Natural Resources. "This invisible nature makes exploration extremely difficult."

Wang's team developed a micro-nano fine particle sampling technique that sieving samples down to the clay-particle level to ensure that the REEs adsorbed onto them are fully captured. More importantly, they established a high-precision analytical standard system for 16 REEs – excluding the radioactive promethium – a breakthrough once considered nearly impossible. "China's leadership across the entire rare earth chain stems from relentless optimization of extraction and enrichment processes in countless laboratories," Wang said.

"Based on the unique characteristics of rare earth resources, China has developed world-leading extraction and separation technologies, which are now widely applied across the industry," said Huang Xiaowei, academician at the Chinese Academy of Engineering.

Global distribution and status of REEs

China currently ranks among the world's leaders in rare earth reserves, production, consumption and exports, forming a clear resource and industrial chain edge. According to the U.S. Geological Survey (USGS), as of 2024 China accounts for an estimated 49 percent of global rare earth reserves, followed by Brazil (23 percent), India (8 percent), Australia (7 percent), Russia (4 percent), Vietnam (4 percent), the United States (2 percent), Greenland (2 percent), Tanzania (1 percent) and South Africa (1 percent).

China produces over 90 percent of the world's processed rare earths and rare earth magnets, Reuters reported.

The U.S. is among the world's largest consumers of rare earth metals, according to Yulia Davydova from Plekhanov Russian University of Economics.

In 2024, 70 percent of U.S. rare earths imports originated from China. While the United States is the second largest producer of rare earths, it trails China significantly, and its known rare earth reserves make up just 2 percent of total global reserves, according to Investing News Network.