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American Focus > Blog > Tech and Science > Why Are Rare Earth Metals So Precious?
Tech and Science

Why Are Rare Earth Metals So Precious?

Last updated: April 14, 2025 9:50 pm
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Why Are Rare Earth Metals So Precious?
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Rare earth metals are currently making headlines due to China’s decision to block exports of these crucial minerals in response to President Donald Trump’s tariffs. These metals, which are essential for defense and various industries, are now at the center of a global trade dispute. But what exactly makes rare earth metals so special, and why are they so valuable?

Rare earth metals are a group of 17 silvery-gray metals with unique atomic structures that give them extraordinary properties. From lanthanum to lutetium, these metals have properties such as luminescence and magnetism that make them indispensable in modern technology. For instance, rare earth magnets are used in wind turbines, jet engines, and electric vehicles due to their exceptional strength and performance. In fact, magnets with rare earth metals can be up to 15 times more powerful than those without them.

China currently dominates the rare earth market, producing 90% of the world’s supply. This dominance gives China significant leverage in global trade, as demonstrated by their recent decision to halt exports of seven crucial rare earth metals. These metals include samarium, gadolinium, terbium, dysprosium, scandium, yttrium, and lutetium. This move has the potential to disrupt industries worldwide that rely on these metals for their operations.

Despite their name, rare earth metals are not actually rare in nature. The challenge lies in finding deposits where these metals can be extracted economically. China has clay deposits with high concentrations of heavy rare earths, while the U.S. has the Mountain Pass mine in California, which primarily produces lighter rare earths. However, all the ore extracted from the Mountain Pass mine is sent to China for processing due to the high energy and chemical requirements of refining rare earth metals.

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To reduce dependence on China and secure a stable supply of rare earth metals, the U.S. can explore alternative sources both domestically and among its allies. Developing a complete supply chain that includes mining, processing, and manufacturing is essential for achieving self-sufficiency in rare earth production. Recycling is another potential solution, as older electronics like hard drives and mobile phone batteries contain significant amounts of rare earth metals that could be recovered and reused.

In conclusion, rare earth metals play a crucial role in modern technology and industry, making them highly valuable and sought after. As global demand for these metals continues to rise, diversifying sources and promoting recycling efforts are essential steps to ensure a stable and sustainable supply of rare earth metals for the future.

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