[Semiconductor] China’s Rare Earth Power Play Against the U.S.

 

Rare Earth Dispute


📅 Published: April 21, 2025

Rare Earth Elements? It's a term not often heard in semiconductor processes, yet since it’s frequently mentioned as essential for semiconductors, I felt the need to revisit what these substances actually are. Based on their stability at high temperatures, rare earth elements are said to be widely used in semiconductors, electric vehicle batteries, smartphones, and military equipment. Without them, manufacturing facilities could face significant disruptions. China currently accounts for 60% of global production, making these elements indispensable—and powerful enough to be used as tools of political leverage. Even though the U.S. is trying to establish its own rare earth supply chain, China’s strong control over the market makes it difficult to find solutions. Please refer to the following:


🇨🇳 China’s Rare Earth Resources and Their Economic and Military Influence

Rare Earth Elements as Strategic Tools to Counter the U.S.

📂 Category: Geopolitics | Supply Chain | Semiconductors | Defense Strategy
🔍 Keywords: rare earth elements, China rare earths, U.S.-China trade conflict, military magnets, semiconductor supply chain

🌐 Introduction: Why Rare Earth Elements Matter

In the 21st century, rare earth elements (REEs) have become the backbone of innovation. Found in everything from semiconductors and electric vehicles to wind turbines and military-grade lasers, REEs are now central to global technology leadership and national security.

China, which controls over 60% of global REE production, has increasingly used this dominance as a form of economic and military leverage, especially against countries like the United States. This article explores how China is weaponizing its rare earth supremacy — and how the U.S. is fighting back.

1️⃣ China’s Dominance in Rare Earth Production

China’s grip on rare earths is not accidental. Backed by massive state investments and environmental leniency, China produces about 60% of the global REE supply.

Rare earths like:

  • Cerium (Ce) – Used in catalysts and semiconductors

  • Praseodymium (Pr) – Essential for aircraft engines and alloys

  • Neodymium (Nd) – Crucial for permanent magnets in EV motors and defense systems

These elements are extracted from ore minerals and prized for their thermal stability and magnetic strength.

📌 Key Rare Earth Minerals:

  • Cerium Ore: Gray-brown, high-temp stable, used in optics & semiconductors

  • Praseodymium Ore: Green hue, used in jet engines & alloys

  • Neodymium Ore: Extracted for ultra-strong magnets in EVs & weapon systems


2️⃣ U.S.–China Economic Conflict Over Rare Earths

The United States has long depended on Chinese rare earths — a vulnerability that Beijing could exploit.

To reduce this risk, the U.S. is:

  • Expanding domestic REE mining

  • Partnering with Australia, Canada, and African nations

  • Investing in REE recycling and substitutes

However, China still dominates the global supply chain, giving it immense influence over tech and military innovation worldwide.

3️⃣ China’s Military Leverage Using Rare Earth Elements

China’s rare earth monopoly is more than economic — it’s also strategic.

Rare earths are vital for:

  • Fighter jets and missiles (neodymium magnets)

  • Laser guidance systems

  • Stealth technology and radar

If China were to restrict REE exports, the U.S. military could face severe setbacks in production, maintenance, and innovation.

4️⃣ The U.S. Response: Building a Rare Earth Supply Chain

In 2019, the U.S. passed federal legislation to rebuild its rare earth supply infrastructure, focusing on:

  • Domestic REE exploration & extraction

  • International supply agreements

  • Strategic stockpiling for defense

The Department of Defense has even funded rare earth mining projects to ensure a secure supply for military use. Still, catching up to China's decades-long lead remains a daunting challenge.

5️⃣ Conclusion: Rare Earths as a Strategic Battleground

China’s dominance in rare earth production is not just about minerals — it’s about power.

These elements:

  • Enable technological supremacy

  • Support national security

  • Underpin global manufacturing of critical products

The U.S.–China rare earth conflict is a microcosm of broader geopolitical tensions, where supply chain control is just as crucial as military might.

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