Understanding Rare Earth Elements: Applications, Classification, and China’s Dominance in the Global Market

What Are Rare Earth Elements?

Rare Earth Elements (REE) are a group of metals with unique physical and chemical properties, widely used in high-tech industries and modern manufacturing. REE includes 17 metals, primarily from the lanthanide series (such as lanthanum, cerium, praseodymium, neodymium, etc.), along with scandium and yttrium. These elements are usually found in nature in the form of oxides and are known as “rare earth” due to the complex extraction and separation process involved.

Classification of Rare Earth Elements

Rare earth elements can be classified into two categories based on their physical and chemical properties:

Light Rare Earths: These include lanthanum (La), cerium (Ce), praseodymium (Pr), and neodymium (Nd). They generally have lower density and melting points and are widely used in catalytic materials and glass ceramics.

Heavy Rare Earths: These include samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), and dysprosium (Dy). They are denser and have higher melting points, mainly used in high-performance permanent magnets and defense applications.

Applications of Rare Earth Elements

Rare earth elements play an important role in various fields, including:

Electronics: Used in the manufacturing of smartphones, hard drives, and chips, among other high-tech products.

Renewable Energy: Essential in wind turbines and electric vehicle batteries.

Defense and Military: Critical in missile guidance systems, night vision devices, and other advanced technologies.

China's Position in the Rare Earth Industry

China is the world’s largest producer of rare earths, with approximately 23% of the global reserves and 80% to 90% of global production. Not only is China the main supplier of rare earths, but it also controls the smelting and separation technologies. With the increasing global demand for rare earths, China’s strategic position in rare earth resources and technologies is becoming more significant. In 2025, China will implement export controls on rare earth-related technologies, further strengthening its control over the rare earth market.