The reliance on China for rare earth elements has raised alarms, particularly after past export restrictions highlighted vulnerabilities. Currently, China dominates the market, controlling around 70% of mining and 90% of processing, prompting countries to seek alternative sources. The expiration of a trade truce in November has intensified fears of renewed export controls, leading to price increases for critical elements like erbium.
Efforts to diversify supply chains are underway, with the U.S. investing heavily in domestic production and forming international coalitions. However, concerns remain about the pace of these initiatives, especially in Europe, where delays could hinder progress in reducing import dependence by 2030, as outlined in the European Critical Raw Materials Act.
Watch for developments in U.S. domestic production and international partnerships as countries scramble to secure rare earth supplies. The expiration of the trade truce in November could trigger renewed export controls, impacting prices and availability of critical elements.