Economic Milestone of the 21st Century: Rare Earth Elements

Year 2025, Volume: 9 Issue: 1, 151 - 164, 26.12.2025

Rahmi İncekara

https://doi.org/10.47478/lectio.1810742

Abstract

This article examines rare earth elements (REEs) as strategically critical resources that increasingly shape contemporary geoeconomic and geopolitical dynamics. It analyzes the sectoral importance of REEs, their role in high value-added industrial production, and their central position within global supply chains, with particular emphasis on the intensifying strategic rivalry between the United States and China. Drawing on a descriptive and comparative evaluation of official international reports, national statistical data, market analyses, and policy documents, the study identifies patterns of production concentration, trade dependency, and supply chain vulnerability. The analysis demonstrates that China’s dominance in both the extraction and processing of rare earth elements has transformed these materials into instruments of geopolitical leverage, particularly in the context of technological competition, defense industries, and the global transition to green energy. In response to these structural dependencies, alternative strategies such as supply diversification, alliance-based resource cooperation, and recycling-oriented circular economy models have gained increasing prominence among Western economies. The article argues that recycling and secondary resource recovery not only offer environmental and economic advantages but also constitute a strategic response to supply insecurity and geopolitical risk. By integrating perspectives from political economy and international relations, the study conceptualizes rare earth elements as key components of power, security, and strategic autonomy in the 21st-century global economy.

Keywords

rare earth elements , geoeconomics , political economy , supply chain security , circular economy

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