According to R. Fig
While much has been made about what the Ukraine deal could mean for the prospects for peace between Ukraine and Russia, much less has been discussed about how the fight for control of rare earth elements (REEs) fits into a broader geopolitical standoff involving China and the West.
China’s overwhelming dominance of the market for rare earth elements, which are vital to both modern military and civilian technology, goes a long way to explaining US President Trump’s interest in Ukraine and Greenland, both REE-rich regions of the world. Control of REEs represents a critical battle for the formation of a new world order.
Rare earth elements are a group of 17 metals that are widely used in the development of modern technology, and global strategic demand for them is growing rapidly. These REEs are divided into “heavy,” “medium,” and “light” rare earths. China has focused on restricting exports in the “heavy” and “medium” sectors, which are vital to military and high-tech applications. China dominates the heavy REE market, producing 99% of these REEs, with the tiny remainder coming from Vietnam.
Today, China is mimicking OPEC’s control over oil in its commodity dominance of REEs, and using its advantage to pressure competitors: it banned REE exports to Japan in 2010 over a fishing dispute and imposed export restrictions on the United States from 2023. It also banned the export of REE extraction and separation technologies. In addition, thanks to its monopoly, China produces weapons five to six times faster than the United States. Trump, like his predecessor Joe Biden, has made it clear that the United States is willing to take radical measures to reduce its near-total dependence on China.
In light of these realities, Trump’s loud rhetoric about Canada, Greenland, and Ukraine appears in a new light.
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