The race for rare earths is heating up as the world pushes for clean energy and tech advancements. But behind the push for wind turbines and electric vehicles lies a complex web of geopolitics, environmental challenges and human costs.

Wind turbines now supply electricity to millions of homes and businesses globally, generating more power than the entire output of India in a recent year. Central to their operation are rare earth elements, materials that are vital to a wide array of technologies. Rare earths are used in everyday items such as mobile phones and electric vehicles, as well as advanced military hardware like the F-35 jet, which uses over 400 kilograms per unit.

Although these elements are more abundant than gold, they are challenging and environmentally damaging to extract and refine. China currently dominates the global market, controlling 92% of refined rare earth output. This concentration of supply has become a national security concern for many countries, as reliance on a single provider can impact industries ranging from defense to renewable energy.

Trade tensions have highlighted these dependencies. Following the imposition of tariffs on Chinese goods by the United States, China introduced export restrictions on rare earth elements and limited sales to US defense firms. This move has had tangible effects, as certain components for American military aircraft rely exclusively on Chinese-made rare earth magnets.

Governments are taking steps to address these vulnerabilities. In Australia, political leaders have proposed creating a strategic reserve of critical minerals to manage potential market and trade disruptions. The European Union is also seeking greater access to rare earth resources, including new partnerships with Central Asian nations and legislative proposals to secure materials for technological and green transitions.

The global demand for rare earths also has significant impacts on developing countries. In the Democratic Republic of Congo, ongoing conflict has caused thousands of deaths and displaced hundreds of thousands, even as the country holds vast mineral reserves. Myanmar has seen a rise in illegal rare earth mining linked to armed groups, leading to reports of human rights abuses and environmental harm.

The expansion of clean energy infrastructure underscores the need for rare earth elements. For example, the United States has installed thousands of new wind turbines annually for nearly two decades, with each turbine containing rare earth magnets. Achieving international climate goals, such as those set in the Paris Agreement, would require a substantial increase in mineral extraction, raising further geopolitical, environmental, and social challenges.



What's behind the race for rare earths?

Wind turbines power millions of homes and businesses around the world. In 2023, they produced more electricity than all of India did. But a key ingredient is needed to keep these turbines running. Rare earth elements. For many countries, the struggle to obtain them is fast becoming a national security issue. Internationally, they're becoming a political weapon. Hello, I'm Deryna Bugeda. This is Pinchpoint, where politics and geography collide. When you're talking rare earth elements, you're talking big business. Very big. In 2024, they were worth more than $3.7 billion. And according to Fortune Business Insights, that's projected to increase by 10% a year. The reason's pretty simple. They're not just used in wind turbines, but in almost every bit of electrical kit you can think of. From your mobile phone, where they're used to make the microphones and vibrating motors, to electric vehicles, where they're essential for the magnets used to power them. And then there's the military hardware, like the F-35. Each jet contains more than 400 kilograms of rare earth elements, not counting those tucked into their weapons. The funny thing is, they're not that rare. They're all more common than gold. Less funny is that they're unbelievably difficult to isolate, and the refining process is an environmental nightmare. And pretty much just one country does it. China. It controls 92% of refined output globally. That presents a problem for countries that need rare earths, but don't want to have to rely on just one country to get them. Case in point, the United States. Donald Trump's tariff bonanza in April quickly spiraled into a trade war with China. He might have guessed how Beijing would respond. During Trump's last trade tussle with China back in his first term, the Chinese leader Xi Jinping made a point of visiting a company that processed rare earths, calling them a vital strategic resource. This time, he went beyond making a subtle threat. This time, he placed export restrictions on rare earth elements and asked other countries not to ship products containing China's rare earths to U.S. defense firms. That's awkward, because the F-35's engines can only be built using a rare earth magnet produced only in China. In Australia, it became an election issue, with Labor leader Anthony Albanese promising to create a critical mineral strategic reserve. It will mean we can deal with trade and market disruptions from a position of strength, because Australia will be able to call on an internationally significant quantity of resources in global demand. Only in April, the EU used a summit in Samarkand, Uzbekistan, to pitch itself to Central Asia as a reliable partner. The EU wants increased access to the region's minerals, including, of course, those that contain rare earths. In 2023, the European Commission proposed the European Critical Raw Materials Act, specifically mentioning the strategic need for rare earths for the green and digital transition of its economy as well as for the defense and aerospace industries. And the scramble for rare earths is affecting developing countries too. In the Democratic Republic of Congo, in the first three months of 2025, fighting has killed thousands and forced hundreds of thousands from their homes. Yet the DRC could and should be one of the richest countries in the world. Beneath its soil lies an estimated $24 trillion worth of minerals and precious metals, including rare earths. Over the last decade in Myanmar, there has been a significant surge in illegal mining of rare earths in Kachin State, supported by armed groups. Human rights violations, as well as extensive damage to livelihoods and local ecosystems have been reported. Clearly, there's a price to pay for the developed world's drive to introduce new technologies. And that price can be measured in lives, political damage and environmental harm. But the cold fact is that for now, at least, rare earth elements are essential to clean the air of western cities and to bringing the climate crisis under some kind of control. Let's go back to wind power. In the U.S. alone, an average of 3,000 new turbines have been going up every year since 2005. The U.S. Geological Survey is mapping each and every one of them. 3,000 new turbines a year soon adds up. There are currently close to 76,000 across the country. And in each and every one of them is a rare earth magnet in the motors that convert the wind into electricity. Trouble is, even more are needed if we're to achieve the goals of the Paris Agreement to limit the rise in global temperature to below 2 degrees Celsius. It would mean a quadrupling of mineral requirements for clean energy technologies by 2040. An even faster transition to hit net zero globally by 2050 would require six times more mineral inputs in 2040 than today, which would likely mean more geopolitical pressure points, more pollution, more displacement and even more death.

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