Donald Trump’s obsession with rare earth elements explained: What are they and what they mean for US economy?

Donald Trump’s recent focus on rare earth elements (REEs) has raised questions about their significance for the US economy. China essentially controls these vital minerals to produce cutting-edge technology—a closer look into rare earth elements and their advantages for the American economy.

What are rare earth elements (REEs), rare earths, or rare-earth minerals (REMs)?

Rare earth elements are 17 elements beneficial to consumer technology, including cell phones and electric and hybrid vehicles. These elements are not 'rare' in abundance but are difficult and expensive to mine in large quantities.

According to the USGS, “The rare earths are relatively abundant 17 elements composed of scandium, yttrium, and the lanthanides."

The 17 rare earth elements include:

Scandium

Yttrium

Lanthanum

Cerium

Praseodymium

Neodymium

Promethium

Samarium

Europium

Gadolinium

Terbium

Dysprosium

Holmium

Erbium

Thulium

Ytterbium

Lutetium

The US Geological Survey (USGS) identifies 50 critical minerals, including rare earths, nickel, and lithium. According to the data from Ukraine's Economy Ministry, Reuters reported that the country holds deposits of 22 of the 34 minerals that are classified as critical by the European Union classifies as vital.

Why Trump eyes Ukarine's rare earths?

Ukraine is rich in mineral resources critical for modern industries, including defence, technology, and green energy. According to several international media reports, it holds significant reserves of rare earth elements like lanthanum, cerium, neodymium, erbium, and yttrium, which are essential for various applications, from consumer electronics to advanced technologies.

About 80% of the rare earth supply chain is now controlled by China, whereas the US produces very little of these elements domestically. China, with whom Trump has threatened a trade war, is the world's top producer of rare earths and many other vital minerals.

Donald Trump said on February 3 that he wanted Ukraine to supply the US with rare earth in return for financially supporting Kyiv's war effort against Russia. He said the United States was looking to do a deal with Ukraine for "their rare earths and other things".

Trump eyes Greenland for its rare earth minerals

In recent weeks, Donald Trump has shown a particular interest in purchasing Denmark's self-governing province of Greenland. Trump has maintained that Greenland should join the US, citing its importance to the country's economic and national security. The area is abundant in vital minerals such as cobalt, lithium, graphite, and yttrium, essential for making batteries, wind and solar power, and cutting-edge military hardware. The rare-earth minerals (REMs) found in Greenland have the potential to significantly lessen the United States' reliance on China.

How it will benefit the US

• Rare earths are critical for the defence industry.
• The rare earth elements are key to producing high-tech devices and EVs.
• These are essential for renewable energy technology.
• A US-based supply chain would reduce dependence on foreign sources, particularly China, for these materials.

-With agency inputs