All Things Policy The Geopolitics of Rare Earths
Nov 13, 2025
Pranay Kotasthane, Chair of the high-tech geopolitics program at the Takshashila Institution, dives deep into the world of rare earths. He discusses America's race to reduce reliance on Chinese supply chains and the implications of Beijing's export controls. The conversation touches on how quickly firms can diversify their sources and the importance of supply-chain resilience in the face of geopolitical tensions. Kotasthane also explores strategies for policymakers and businesses to navigate this complex landscape, urging proactive measures in a shifting global power dynamic.
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What Rare Earths Really Are
- Rare earths are 17 abundant elements that matter because separating and processing them is costly and polluting.
- They enable strong, light permanent magnets used across EVs, defense, and many motors.
Rubber Shortage Sparked Synthetic Shift
- Pranay recounts how natural rubber shortages in WWII forced rapid development of synthetic rubber.
- The story shows strategic dependencies can spur technological substitutes fast when supply shocks arrive.
Why China Dominated Processing
- China developed dominance not because separation tech is unique but because Western firms avoided pollution-heavy processing.
- That led to China's comparative specialization across extraction and processing stages.