The Dawn of the Rare Earths Era: How the “Next Resource War” Will Reshape Our World
The Dawn of the Rare Earths Era: How the “Next Resource War” Will Reshape Our World
The global scramble for rare earth elements (REEs)—the 17 metallic elements critical for everything from smartphones to fighter jets—is intensifying.
A recent study of Montana’s Berkeley Pit has revealed substantial REE deposits in its water, sparking hopes for a reliable domestic supply.
As nations vie for control of these indispensable materials, a new “resource war” is emerging, with wide-ranging economic, strategic, and environmental consequences.
1. The Berkeley Pit Revival: A Shovel-Ready Solution
Once an abandoned Superfund copper mine, the Berkeley Pit’s flooded waters now host trace amounts of yttrium, lanthanum, cerium—and even high-grade REEs prized by defense agencies.
Montana’s Environmental Quality Council is pushing for federal funding of a pilot concentrator that could:
- Extract zinc and manganese to cover operating costs
- Refine rare earth oxides for industrial and military use
- Serve as a blueprint for revitalizing other defunct mines
2. The Geopolitical Battleground: China vs. the West
Today, China controls roughly 65% of global rare earth mining and over 85% of processing capacity.
In April 2025, tight export controls on key REEs sent shockwaves through Western industries.
These moves highlight a strategic vulnerability—one that the U.S., Europe, and allies are eager to address by diversifying supply chains.
- Export Controls: New licensing requirements add uncertainty for buyers
- Supply Diversification: Projects in Australia, India, and Africa gain momentum
- Defense Security: Advanced weaponry—from jets to missiles—depends on REE-based magnets
3. Emerging Competitors and Innovative Processing
Private startups and allied nations are stepping up efforts:
- Phoenix Tailings (USA): A New Hampshire plant opening mid-2025 will process mine tailings and recycled electronics using a low-emissions method.
- Lynas Rare Earths (Australia/Malaysia): Expanding capacity in Southeast Asia to secure non-Chinese supply chains.
- Greenland & Mozambique Projects: New exploration initiatives target bastnäsite and ion-adsorption clay deposits, though infrastructure and environmental reviews remain challenges.
4. Industry Impact: Tech, Clean Energy, and Defense
Shortages in rare earths ripple across multiple sectors:
- Electric Vehicles: Neodymium–praseodymium magnets are central to high-efficiency motors; price spikes could raise EV costs by 5–10%.
- Renewables: Wind turbines rely on dysprosium for heat-resistant magnets, crucial for offshore and high-temperature applications.
- Consumer Electronics: Smartphones, laptops, and LED displays all incorporate REEs for display phosphors and battery alloys.
- Defense Systems: Guidance systems, sonar arrays, and satellites hinge on stable REE supplies.
5. Environmental and Community Considerations
While new REE sources offer strategic benefits, they bring environmental challenges:
- Toxic Waste Management: Solvent extraction can produce acidic tailings that risk groundwater contamination.
- Land Use Conflicts: Many prospective sites overlap with indigenous territories, necessitating careful consultation and consent.
- Circular Economy: Recycling magnets from end-of-life electronics could supply up to 20% of demand if scaled effectively.
6. Future Outlook: Navigating the Rare Earths Reckoning
The coming decade will determine which players secure leading positions in the REE arena. Key factors include:
- Policy Coordination: Multilateral agreements for shared stockpiles and reciprocal licensing could stabilize markets.
- Technological Breakthroughs: Research into alternative magnet materials, such as iron-nitride alloys, may reduce reliance on heavy REEs.
- Investment Flows: Public-private partnerships—modeled on defense-industry programs—will be crucial for capital-intensive mining and processing facilities.
As nations and companies chart their strategies, the “rare earths war” will be a defining element of 21st-century geopolitics—impacting everything from your next electric car to the balance of military power.