Description: The US and China have independently ratcheted up their programs to increase the supply of rare earth minerals and heavy elements used in the high technology industries as the competition for global market dominance intensifies in light of the trade truce between the world’s two largest economies. The US has focused on forging partnerships with conventional allies such as Australia which is invested in excavation of the elements on home soil and is increasing foreign initiatives for investment such as the one in Malaysia, through the company Lynas Rare Earths. Nevada – based MP Materials Corp. is focused on domestic production in the US, however, projections indicate that the US basins contain low amounts of heavy rare earth elements which are key for the production of crucial components across several industries. China on the other hand, has increased and expanded partnerships across the African continent, with Premier Li Qiang, visiting Zambia, where China aims to resuscitate an old railway line connecting Zambia with ports in Dar es Salaam in Tanzania. Brazil has also emerged as a major player in the rare earths game with significant deposits discovered in environmentally sensitive areas.
Impact: Rare earth elements have emerged as the major resource in the global competition for economic and geopolitical dominance. Access to the materials enables countries to dictate the conditions and the market flows across several leading industries while conditioning alliances and strategic partnerships by undertaking a dominant position in the rare earth elements market. The US has pushed forward with domestic production initiatives with little to no results, while partnerships such as the one with Australia would take years to yield any constructive results. The US has also positioned itself in conflict laden zones, such as the DR Congo, where substantial resources could enable the country to dwindle China’s dominance on the rare earth elements market. China currently holds a dominant position in regard to every other country in the rare earth market, through domestic production and nurturing long – term ties in crucial areas such as the African continent. China is set to remain the dominant global player in regard to rare earth elements which places the country in an advantageous position in terms of the trade war with the US. The US currently lacks the global positioning in resource rich areas in terms of rare earths and would have to adapt more brazenly to the difficult market conditions in order to competently rival China.