Why are Rare Earth Elements Important?

What are the rare earth elements? Rare earth elements (REEs) are a set of 17 metallic elements on the periodic table that are critical components in many high-tech devices and clean energy applications. Rare earth elements and critical minerals are now frequently featured in global news cycles due to the national security and economic impacts of increasing supply disruption. US-China Trade War Drives Investment in Rare Earth. 

2025 is set to be an inflection point, as a year of tariffs and trade wars drive record investment. China’s latest export restrictions on critical rare earth elements applies yet more pressure to what are already tightly controlled materials. The latest round of restrictions extends to erbium, europium, holmium, thulium, and ytterbium, targeting defense and semiconductor chip applications. 

Rare earth elements (REEs) are important because their unique magnetic, phosphorescent, and catalytic properties are essential for a vast and growing array of high-tech devices, clean energy applications, and defense systems.

They are critical for modern society's stability, growth, and security, enabling technologies that impact everything from consumer electronics to global energy transitions.

Market disruption caused by export restrictions is unavoidable due to a lack of alternative rare earth sources and an absence of viable alternative materials in many integrated applications.  

Due to their ability to withstand high temperatures and their magnetic strength, REEs are essential for modern military equipment and national security. Used in guidance systems, jet engines, lasers, radar, sonar, and night vision goggles. 

In short, there are currently no known, equal substitutes for rare earth elements in many of these applications, making their supply chain a matter of strategic economic and political importance globally.