The Peter Zeihan Podcast Series Are Rare Earths Really That Rare? || Peter Zeihan
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Mar 3, 2025 Rare earth elements are in the spotlight, but are they really that rare? Discover how these materials are mostly byproducts of other mining processes instead of scarce resources. The geopolitical stakes surrounding these elements are also critical, especially in light of U.S. policies. The complex challenges of processing these metals are explored, with a keen focus on China's dominant role in the market. There's a looming risk for the U.S. if it doesn't boost its own processing capabilities in this competitive landscape.
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China's Rare Earth Strategy
- China's rare earth dominance stems from their willingness to handle the polluting refinement process, subsidized and overproduced.
- Other countries possess the capacity but avoid activating it due to market saturation and delayed returns.
Rare Earth Abundance
- Rare earth elements aren't actually rare; they're byproducts of other mining operations like nickel and copper.
- China corners the rare earth market by processing the dirty, time-consuming refinement, not the mining itself.
Downstream Processing and US Policy
- While China controls rare earth refinement, their downstream processing into actual products is less developed.
- The U.S. should focus on securing other crucial processing capabilities like aluminum and steel where China's dominance poses a bigger threat.