In the new era of Physical AI, the ultimate weapon is not found in silo but hidden within the microscopic architecture of the atom. Rare earth elements possess unique orbital structures that enable a potent “doping effect,” reordering the electronic configurations of surrounding atoms with just small amounts of addition. This microscopic peculiarity is changing material characteristics and in turn, redrawing the ground of international politics.
What are rare earths?
The term “rare earths” is a collective name for 17 elements, the Lanthanides, Scandium, and Yttrium. The history of rare earths began in the late 18th century when Johan Gadolin separated Yttrium from Gadolinite. Later Russian chemist Mendeleev rearranged them into a special group on the periodic table due to their similar properties. Originally used for gas lantern mantles, these elements are now essential to high-tech industries for their unique chemical traits.
The value of rare earths does not come just from their scarcity. Every atom has a nucleus at its center with electrons orbiting around it. Rare earth elements have f-electrons that move in special orbits, and because of these unique electrons, rare earths are sensitive to changes in magnetic fields, light, and electric currents. This unique atomic arrangement allows them to have strong magnetism, absorb specific wavelengths of light, and precisely control electrical currents. These subtle properties create the industrial value of rare earths.
Where do we use rare earth?
Neodymium - Magnet
Samarium - Sensor
Terbium - Backlight
Praseodymium - Speaker
Dysprosium - Motor
Ytterbium - Laser
How do we make rare earths?
The biggest obstacle for the rare earths is the severe environmental impact of its refining and processing steps. While rare earths are distributed widely around the world, locations that can resolve both economic viability and environmental issues are extremely limited. Rare earth elements are very similar in their chemical properties, making it extremely difficult to remove impurities and extract effective ingredients through multiple repetitions. Producing a single ton of rare earths generates 60,000 of toxic gas, 200.000 liters of acidic wastewater, and about one ton of radioactive waste. Additionally, some rare earths are radioactive, making processing even more difficult. Rare earths are largely classified into light and heavy rare earths based on their density. Heavy rare earths exist in the Earth’s crust at lower rates than light rare earths and are harder to separate due to their lower ionic radius. While light rare earths are used widely in common applications, heavy rare earths command a higher value due to their critical use in aerospace, defense, and advanced arms manufacturing.
Global strategies for rare earths
Currently, the United States and China are moving faster to control resources by expanding their lists of strategic minerals. China is weaponizing rare earths by designating them as strategic exports, while the U.S. is securing stakes in related companies and using executive orders to bring supply chains back home. As China’s effort to control all production and exports meets the U.S. push to reorganize supply lines, rare earths have emerged as the core of a 21st century resource war.
China’s low-priced exports since the 1980s effectively neutralized Western competition in the rare earth sector. By adopting the extraction methods developed by Dr. Xu Guangxian, China achieved vertical integration from refining to processing. By labeling rare earths as military-use items, China manages global supply though export limits and pricing strategies, while the state handles the environmental costs of production.
In contrast, the United States is now attempting to reclaim its lost dominance by treating supply chain security as a national defense priority. This includes reopening shuttered mines with the help of the Pentagon and taking direct financial stakes in private rare earth companies.
Japan shows excellence in advanced industries like semiconductors, but its supply chain for rare earths and permanent magnets remains dependent on China. The country experienced difficulties due to this during the 2010 Senkaku Islands dispute. When the Japanese coast guard detained a Chinese fishing boat near the islands, China immediately used rare earth export controls as a weapon. Japan, which relied on China for more than 90% of its rare earths, struggled to secure core materials for various high-tech industries and made a concession by releasing the detained Chinese captain without conditions after only a few days. Since then, Japan has been diversifying its supply chain and investing in new technologies to reduce rare earth usage. Recently, there have been reports that Japan successfully drilled for mud containing rare earths about 6,000m under the sea.
While South Korea also shows excellence in advanced industries, its supply chain is dependent on China like a shackle. The country needs to move away from relying only on China by diversifying its supply chain to countries like Australia, Vietnam, and Myanmar, and build a control tower by combining the expertise of public and private sectors. To gain an advantage in the hegemony war that started from small movements within atoms, the only way is to diversify the supply chain and maintain a lead through constant technical innovation.
Lee Geon-yong (ST Reporter)
rjsdyd0414@soongsil.ac.kr
