Geopolitics of rare earth elements ….. Amna Hashmi
The new global fight for rare earth elements (REEs), which are critical to the high-tech and renewable energy industries, is rapidly transforming the geopolitical landscape. Due to the growing competition for these valuable resources, nations have come to realise the importance of geostrategic commodities. REEs are not only an economic concern but rather a strategic asset, the struggle for which reflects a shift in power relations.
REEs include 17 metals including neodymium, dysprosium and terbium that are crucial components in the production of various electronics like the smartphones, electric vehicles, wind turbines and military hardware. These elements are crucial in the manufacture of strong magnets, catalysts and many other important components. Given the fact that the world is now turning to use renewable energy sources and other new age technologies, the demand for REEs is expected to rise in the future.
China dominates the global REEs market at 80% which gives it a leverage over the global supply chains and has been seen as a threat especially by other countries depending on China during political tensions. For instance, in 2010, China ceased exporting REEs to Japan for some time in connection with a dispute over some islands. This is clear evidence that these materials could be used as an instrument in international relations.
At present, the US, Europe and Japan are attempting to diversify their supply chain through different strategies. These are: searching for other sources of REEs; developing technologies that would allow for the recycling of REEs; and searching for other materials that can be used instead of REEs.
For example, the US has recently reopened and invested in its domestic sources of rare earths including the Mountain Pass mine in California. Furthermore, the US has joined other nations like Australia and Canada in order to develop new mining opportunities and establish supply chains. Similarly, in the EU, the European Raw Materials Alliance has been established to enhance the extraction and refining of the rare earth metals within the EU.
It is also important to note that international alliances are becoming more significant in geopolitics of REEs. It is possible to diversify the supply chains and decrease the vulnerability of the REEs market to the monopolistic influence of China through cooperation. For example, the Quad alliance – the US, Japan, India and Australia – has considered collaboration in securing critical supply chains for minerals such as REEs.
These alliances are not limited to mere geographical alignments but also include economic, environmental and technological aspects. Through the cooperation of nations, countries can come up with long-term and strong supply chain networks that do not rely on a particular source. It also assists in dealing with the environmental impacts of rare earth mining and processing that are known to have negative impacts on the environment.
Based on these factors, Pakistan can be a significant actor in the geopolitics of REEs because of the country’s location and potential for possessing rare earth minerals. The northern region of the country – including the Himalayan fold and thrust belt, Karakoram terrain and the Kohistan island arc – is rich in REEs. The eight identified REEs exploration zones in KP province from Mansehra to Pak-Afghan border are 200 kilometres long. These areas have the possibility of containing REE deposits and are advantageous to Pakistan to enhance its economy by reducing dependence on imported products.
The competition for the rare earth elements in the world shows how the possession of natural resources is closely related to the power relations. Since the competition for the control of these strategic materials is intense, it is essential to form long-term partnerships and embrace sustainable management. In this high-risk game, the way to win the future and achieve global order and progress is through cooperation and ethical use of resources.
Will the international community rise to the challenge and forge a balanced, sustainable future for REEs? The decisions that are being made today will shape the future of the geopolitical landscape and the future of technology that is to come in the next few years.
Courtesy Express Tribune