Rare earth elements have a strategic value for China Rare earth elements have a strategic value for China, but that could be overstated
China has a monopoly on rare earth elements exports, which play a central role in high-end technologies. Other countries can challenge that at a cost.
...But there is a more fundamental geo-economic dilemma the US government and firms face with respect to ramping up the REE supply.
The actual volumes of REEs demanded by the global economy are relatively meagre. This market is already captured by a handful of Chinese players, making it hard for smaller players to survive. So, over the long-run, entering REE mining is not a profitable venture.
“Given the contradictory forces of national security and profits in the REE sector, only governments can influence significantly the outcomes in a positive way,” wrote political scientist Steve Dobransky.
If countries such as the US want to effectively challenge the Chinese REE monopoly by entering the mining process, they would need to absorb the losses associated with such a move.
https://theprint.in/world/rare-earth-elements-have-a-strategic-value-for-china-but-that-could-be-overstated/284989/