There are 17 rare earth elements. And in the ongoing trade war, it looks like China has found 7 rare-earth minerals as the trump card against US in the ongoing trade war. On April 4, 2025, China’s Ministry of Commerce placed export restrictions on 7 types of rare earth elements (REEs) in retaliation for US tariffs of 145 per cent on Chinese goods. While the new restrictions are not a ban, instead, they require the firms to apply for a license to export REEs. These restrictions will likely put a pause on exports as the Chinese government builds the new licensing system, which in turn could incentivise countries to cement their trade relations with China. 

In 2018, China accounted for two-thirds of all rare-earth production globally. In the past, China has used its control of the rare-earth supply chain as a political tool, most notably against Japan in 2010 during a maritime dispute. China has also been notorious for it imposed restrictions on exports of rare-earth minerals, to force foreign firms to set up high-tech manufacturing facilities in China. The issue was resolved by WTO in 2014. 

Now, with an economy like China using REEs as a political tool, we understand these rare earth minerals are deemed important and could shake up the trade war. Therefore, in this article, we break down what rare earth elements are, along with the list of names and uses of the 7 Rare Earths that China has put trade restrictions on. 

What are Rare Earth Elements? 

The rare earth elements (REE) are a group of 17 metallic elements on the periodic table that include 15 lanthanides, with atomic numbers 57 (lanthanum, La) to 71 (lutetium, Lu), plus yttrium (Y, atomic number 39) and scandium (Sc, atomic number 21). 

Here's a more detailed breakdown of the 15 lanthanides: 

 All rare earths have similar chemical properties. But due to their chemical similarities, they occur together in minerals and rocks and are difficult to separate from each other, sometimes referred to as ‘chemical coherence’.

The lower atomic weight elements lanthanum to samarium (Sm), with atomic numbers 57 to 62, are referred to as the light rare earth elements (LREE); while europium (Eu) to lutetium, with atomic numbers 63 to 71, are the heavy rare earth elements (HREE).

Are Rare Earth Elements Really Rare? Not Quite. 

Not exactly. Most rare earth elements (REEs) are fairly common in the Earth’s crust—cerium, for example, is more abundant than copper or lead. 

The term “rare earths” was first used in the late 18th and 19th centuries to refer to minerals containing REE, of which known deposits were rare back then. What’s truly rare today is finding rich, concentrated deposits that are economical to mine. That’s why countries like China dominate the market—they have the resources and the refining power. 

What are Rare Earth Elements used for? 

Due to their unique magnetic, luminescent, and optical properties, the Rare Earth Elements (REEs) have intensive use across electronics, manufacturing, medical science, technology, defence, aerospace, automotive, renewable energy technologies, and others. 

Some of the REEs are used for making powerful magnets, hard disc drives, CD and DVD players, portable electronics, microphones, speakers, magnetic refrigeration, petroleum refining, batteries, fuel cells, alloys, jet engines, fluorescent lamps (CFLs), cathode ray tubes, light emitting diodes (LEDs), LCD, plasma screens, lasers, fibre optics, glass polishing, ceramics, water treatment, catalytics converters, nuclear fuel rods, medical imaging, X-ray, cancer treatments, robotics, drones, headphones, mobile phones, computers, wind turbines, and electric motors - making them a key component in electric vehicles. 

As per CSIS, the rare earth elements are widely used across a range of defense technologies, including F-35 fighter jets, Virginia- and Columbia-class submarines, Tomahawk missiles, radar systems, Predator unmanned aerial vehicles, and the Joint Direct Attack Munition series of smart bombs. For example, the F-35 fighter jet contains over 900 pounds of REEs. An Arleigh Burke-class DDG-51 destroyer requires approximately 5,200 pounds, while a Virginia-class submarine uses around 9,200 pounds. 

As per the Geological Society of London, large wind turbines can each use up to 2 tonnes of high strength magnets which contain about 30% REE. Further, the batteries, electric traction motors and regenerative braking systems of each hybrid vehicles use up to 20 kg of REE. 

Also read: Economy Explainer: Why Are Gold Prices Rising? 5 Key Reasons Explained

Which 7 Rare Earths Has China Restricted and What Are They Used For?

The new restrictions apply to 7 of 17 REEs namely: Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium, and Yttrium. 

Potential Uses of these 7 Rare Earth Elements 

Why does China enjoy a monopoly on Rare Earth Elements? 

Since the late 1990s, China has provided 85 –95 per cent of the world’s REEs. But it’s not because other countries don’t have REEs. 

As per the Geological Society of London, the main problem with REE supply is that there are not enough REE available to countries other than China. Although there are known REE deposits outside China that are potentially economic to mine, they cannot simply be ‘turned on’; it may take ten years, or longer, to go through all the technical, financial, environmental and regulatory stages needed to establish a new mine. 

Global Rare Earth Reserves Outside China 

Australia: (~4 million metric tons): Home to the Mount Weld mine, one of the richest REE deposits in the world. 

Brazil: (~21 million metric tons): Huge potential with several untapped deposits, though mining is still limited due to environmental and infrastructure challenges. 

South Africa: (~790,000 metric tons): Rich in rare earths like monazite sands, but mining is in the early stages. 

Saudi Arabia: Significant potential in the Arabian Shield, but still in the exploration phase with government backing to invest in mining. 

Japan: Potential underwater REE deposits (around 16 million tons) in the Pacific Ocean, but deep-sea mining is technically and politically complex. 

United States: (~2.3 million metric tons): The Mountain Pass mine in California is the only active U.S. REE mine. 

Vietnam: (~22 million metric tons): One refinery exists but was recently shut down.

Conclusion 

Rare earth elements (REEs) will remain critical to modern technology and clean energy for the foreseeable future. As demand grows—driven by electric vehicles, renewable energy, defence, and electronics—the global focus on securing reliable, diversified supplies will only intensify. While China currently dominates the market, other nations are accelerating efforts to develop their mining, processing, and manufacturing capabilities.

Also read: Difference Between Nuts and Peanuts